The Home Guaranty Corp. (HGC) has remitted a total of P1.36 billion as payment of guarantee claims on investments in various housing projects.
Of the total amount, HGC paid P880 million in cash to the Social Security System (SSS) and P483.6 million worth of debenture bonds to the Government Service Insurance System (GSIS).
HGC is a government-owned and controlled corporation promoting home ownership by issuing risk guarantees on housing loans. It is the only government owned corporation mandated by law (Republic Act 8763) to operate a credit guarantee program by providing risk guarantees and fiscal incentives, such as tax exemptions on interests derived from housing credits/loans extended by banks and financial institutions.
In a statement, HGC president Gonzalo Benjamin A. Bongolan said that the P551.60 million paid to GSIS represents payment of guarantees for their previous investments in housing development projects, such as the Pabahay sa Riles, Commonwealth Urban Renewal Project, and the Bilibid Viejo Renewal Housing Projects. The so-called Asset Participation Certificates (APCs) were used as guarantee of HGC.
The P812 million paid to SSS represents settlement of guaranty claims on its investment in the Suburban Housing project.
As of December 2007, HGC extended a total of P72.82 billion worth of outstanding guarantees to housing loans to support the housing program of the Arroyo administration, particularly for the low and middle income families.
A lead government agency on housing finance, HGC has achieved near zero average call rate of 0.08 percent against outstanding guarantees during the five year period 2001-2006 due to reforms implemented by the HGC Board and Management.