OFWs take advantage of plunging peso

Filipino workers in the Northern Marianas are taking advantage of their greenback’s stronger buying power as they intensify payment of outstanding loans with a Philippine government-controlled housing corporation.

PAG-IBIG Fund administrator on Saipan Lynell F. Fulgencio disclosed that a good number of Filipino workers have been advancing payments since the value of Philippine currency started plunging to beyond 45 pesos against the United states dollar,

Mr. Fulgencio explained that Filipinos are practically paying 50 percent less of their monthly amortization due to the peso’s devaluation against the dollar from a little over 25 pesos in 1996 to close to 50 pesos now.

“What happens is they maintain the dollar amount that they would normally pay the Fund back when the exchange rate wasn’t this high yet and with only a few dollars more, they can already pay two months of their home amortization,” he stressed.

He revealed that five Filipino workers have taken advantage of the rising exchange rate by making full payment for their remaining account with the Fund.

At present, more than 2,300 Filipino workers throughout the Northern Marianas have enrolled to the Philippines housing program. Total membership is expected to reach 2,500 by end of the year.

The program has signed in 11 and nine new members from throughout the CNMI in August and September, respectively, according to Mr. Fulgencio.

More than 100 PAG-IBIG members in the Northern Marianas have already availed of the program’s housing loan packages, while others are still awaiting for new developers expected to visit Saipan to conduct housing fair.

The Fund’s Saipan office collects an average of $15,000 in monthly contribution. It has collected close to $400,000 in total membership contribution as of end-September 2000.

Since the program’s launching in the CNMI, PAG-IBIG Fund has already collected around $800,000 in total contribution and loan payments.

For the months of August and September, the program generated $10,115 in total contribution and about $20,000 in housing loan payments.

Mr. Fulgencio is confident the program’s membership will grow bigger, pointing out that Filipinos are taking advantage of the high U.S. dollar and Philippine peso exchange rate which now average at P48 per dollar.

He noted an increase in the number of migrant workers submitting applications for membership in the PAG-IBIG Fund Overseas Program, which has been made voluntary by the Philippine government since its re-introduction.

Under the program, migrant workers can apply for a housing loan amounting from $5,000 to $14,500 after 12 months of paying membership contribution of between $20 to $40 every month.

The PAG-IBIG Overseas Program has posted a total worldwide membership of 65.275 million migrant workers in 1997, which marks a significant increase from the previous year’s 56.719 million.