Senator Alan Peter Cayetano has called on the Development Budget Coordination Committee (DBCC) to thoroughly assess the funding mechanisms for housing projects due to concerns about using a sovereign guarantee for this initiative.
During the Senate Committee on Finance’s briefing with the DBCC on the Proposed 2025 National Expenditure Program on August 14, 2024, Cayetano referenced an August 7 news report that said President Ferdinand Marcos Jr. approved a sovereign guarantee for the Pambansang Pabahay para sa Pilipino Housing (4PH) program.
The senator recalled past issues where developers, supported by guarantees from government institutions, encountered financial difficulties when borrowers defaulted, leading to significant financial risks for these institutions.
“This is my fear. Hindi ba naging problema natin noon is that developers would borrow [funds from] GSIS (Government Service Insurance System), PAGIBIG, et cetera, [and] SSS (Social Security System) would guarantee and then they would let the buyers borrow also,” he said.
A sovereign guarantee is a government promise to cover the repayment of a loan if the borrower fails to do so. With President Marcos’ approval, the government will back the financial obligations of the 4PH program, potentially helping secure funding from international or private sources by reducing the risk for lenders.
Cayetano stressed that if Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar is confident about providing homes for the homeless through this program, it is essential that the plan is carefully designed and feasible.
“Ang point ko lang, kasi sabi niya na y’ung minimum wage owners daw, mabibigyan niya ng ownership ng bahay. If that’s true, I love that,” he said.
The senator pointed out the need for housing projects to be financially realistic and be based on more than just hopeful promises. He also urged the DBCC to carefully review the funding to ensure it is practical and effective.
“We all want quality housing. We all want to fix that. But economics has to work,” he said.
“Pakibantayan lang ‘yon kasi I want him [Acuzar] to succeed. I want the housing sector and the projects to succeed, but it has to be workable,” he added.###
FILIPINO VERSION
Hinimok ni Cyet
