The Philippines’ Government Service Insurance System extended 208 billion pesos (US$4.36 billion) of loans to more than one million members and pensioners from 2019 up to May 31 this year, according to Rolando Macasaet, president and general manager of the civil service pension fund.
He says the loans “provided assistance to countless lives at a time when they needed our help the most”.
“The multiplier effects of the loans in the communities have effectively pump-primed the economy in far-flung areas as banks and other financial institutions have tightened [lending] and were hesitant to grant credit,” Macasaet says in a statement on June 6.
He says the loans fall into various GSIS categories, including for emergencies, education, and for purchasing computers.
The largest sum of 108 billion pesos was extended under a financial assistance loan that is similar to a refinancing scheme for existing loans of up to half million pesos.
According to latest available data, GSIS had 1.32 trillion pesos of assets under management as of end-2019, and more than two million active members.