HGC okays P18.59-B guaranty line

MANILA, Philippines - The board of directors of the Home Guaranty Corp., during its September 2011 meeting, approved nine separate guaranty line applications to cover P18.59 billion worth of housing loans.  

Banco de Oro Unibank, Inc.’s application for a P10-billion retail guaranty line and P5-billion developmental guaranty line is the highest approved this year.

Also approved were applications from United Coconut Planters Life Assurance Corp., HSBC Savings Bank (Philippines), Inc., 8990 Housing Development Corp., Tahanan Mutual Building and Loan Association Inc., Rural Bank of Cauayan, Inc., Philippine Veterans Bank and 1st Macro Bank, Inc.

Vice President, Housing and Urban Development Coordinating Council (HUDCC) chairman and vice chairman of the HGC board Jejomar C. Binay presided over the deliberations.

HGC president Manuel R. Sanchez said the latest batch of approved guaranty lines attests to HGC’s thrust of expanding its guaranty business to cover more housing loans in more places nationwide.

So far, HGC has approved a total of P38.84 billion guaranty line applications for 2011. This, according to Sanchez, is proof of banks’ and other housing finance institutions’ confidence on the HGC guaranty.

HGC, a key shelter agency under HUDCC, is mandated to provide risk guaranties and fiscal incentives for housing credits extended by financing institutions. HGC carries the unconditional guaranty of the Republic of the Philippines.