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The Pag-IBIG Fund, one of the country’s leading government financial institutions and the biggest financier of the government’s housing program, has set two all-time records in the granting of loans to its members in 2005, according to its President and CEO Atty. Romero Federico Quimbo.

Under its short-term loan programs covering multi-purpose and calamity loans, the agency extended a record P18.54 billion to its more than six million members nationwide, an eight-percent increase from the previous year’s release of P17.13 billion. The year likewise saw more housing loans approved for individual housing borrowers at P15.29 billion.

Quimbo said that the loans released by the Fund under its housing and short-term lending programs were recorded as the highest in the Fund’s 25-year history.

He attributed this accomplishment to the efficient administration of members’ contributions and implementation of reforms to allow members easy access to its loan facilities. “This was the marching order given to us by our Board Chairman, Vice President Noli De Castro. We streamlined our operations and provided our members simplified yet effective business processes. They deserve no less, since they are the true owners of the Fund.”

Among the measures the Fund carried out included the following: reduction of documentary requirements on loans and lending services; reduction of standard time for processing members’ loans, claims and in responding to members’ concerns; putting up One Stop Shops for business transactions and a smart queuing system (Q-servicing) especially during peak periods; putting in place a “No lunch break” customer service; and promoting a system for electronic / on-line client servicing and linking with private and public banks for the use of their electronic payment facilities.

Posting a net income of P7.38 billion last year, the highest income ever made thus far in its history, the Corporation once again earned for the agency a spot among the top ten biggest earning Philippine corporations in 2005. It was also granted an Aaa- corporate rating by the Philippine Ratings Services Corp. (PhilRatings), the highest given for the year.

The Fund is only one of the few GFIs that conscientiously pay taxes. Last year, the Fund remitted almost P2 billion (P1.90B) in taxes and subsidies, with the corporate income tax accounting for P726.60 million.

The vigorous performance of the Fund in the past year will translate to greater benefits for its members nationwide. “We expect to declare at least P5.54 billion in dividends to our members, or increase of 14.23 percent over the P4.85 billion we gave in 2004,” Quimbo said.

Under the law, the Pag-IBIG Fund is required to set aside an amount equivalent to no less than 70 percent of its annual net income and declare this as dividends, later credited proportionately to the members’ total savings. (end)