The EO would also hasten the development of the secondary mortgage market that could raise funds of up to P25 billion for the so-called formal housing sector.
In an interview with reporters, Housing Secretary Michael T. Defensor said that they have already droppeShip owners hail GMA order The Philippine Interisland Shipping Association (PISA), the umbrella organization of the domestic shipping sector, recently lauded President Arroyo’s Executive Order 164 which lowers tariff for certain tariff lines since some items imported by the industry for use on its vessels were included in the order.
The issuance of EO 164 is one of several initiatives being undertaken by the government to level the playing field among different transport sectors, PISA said. Included among the government’s initiatives is the proposal of the Department of Finance to lift the exemption enjoyed by the airline sector on its fuel importation.
PISA has been seeking the help of the government to level the playing field among different modes of transportation in the Philippines. It has advocated for policy reforms that will provide an opportunity for the domestic ship owner to build on its competitiveness vis-a-vis its counterparts in the transport sector.
The group manifested its strong support on any move by the government that will put the domestic shipping industry on equal footing with its counterparts and promote fair competition in the transport sector.
PISA said that when domestic ship owners are able to gain access to incentives, they will be able to bring down their cost of doing business and ultimately enable them to increase their efficiencies and even allow the shippers to bring down their own cost of doing business as well.
This in effect will result to a reduction in costs that will redound to the benefit of the ultimate consumer by way of more affordable products, PISA said. – Nestor Etollelso head of the Housing and Urban Development Coordinating Council (HUDCC), said.
The government housing czar said they are prepared to provide re-pricing of lending rate every two years instead of the more frequent quarter or annual done by commercial banks.
"We would like to provide a re-pricing every two years. Private commercial banks like the bank of the Philippine Islands (BPI) is reportedly giving as low as eight percent for P400,000 with re-pricing every year. For 11 years, it is about 10 percent," Defensor said.
"It is one of the things that we are trying to work out with Pag-ibig, which is presently offering six percent for loans of P150,000 but we want to make it lower for others."
Pag-Ibig charges a six-percent interest rate on loans ranging from P150,000 to p180,000; for loans P180,000 to P225,000 it is nine percent. The interest is 10 percent for loans ranging from P225,000 to P500,000.
But the re-pricing period is five years which has become unattractive. Likewise, the repricing period of two years for loans is expected to cover the government from the prevailing low interest rate regime. — Ted Torres