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Keisha Ta-Asan - The Philippine Star
June 5, 2026 | 12:00am
The facility is expected to support the financing of up to 1,000 housing units, assuming a loan value of P1 million per home, as the government continues to address the country’s 6.4-million housing backlog.
Philstar.com / Jovannie Lambayan
MANILA, Philippines — State-run Philippine Guarantee Corp. (PhilGuarantee) has partnered with Producers Savings Bank Corp. for a P1-billion housing retail guarantee facility aimed at expanding access to housing finance while helping banks manage credit risks.
The facility is expected to support the financing of up to 1,000 housing units, assuming a loan value of P1 million per home, as the government continues to address the country’s 6.4-million housing backlog.
PhilGuarantee senior vice president Teresito Cayo Butardo said the partnership would help bridge the housing gap by encouraging lenders to extend more loans to qualified borrowers.
“Modest as it may seem in the face of such a vast need, its contribution is undeniably meaningful. However, extending loans of this magnitude is no small undertaking,” he said.
“It carries with it inherent risk, particularly, the possibility of borrower default. Thus, robust risk mitigation measures are essential to ensure that banks remain well protected and that loan portfolios stay sound and sustainable.”
PhilGuarantee provides credit guarantees to help improve access to financing, particularly in sectors where lenders may face elevated risk exposure. Under the new facility, Producers Bank is expected to extend housing loans backed by PhilGuarantee’s risk mitigation mechanism.
Producers Bank chief operating officer Andrei Cornejo Jr. said the collaboration supports both PhilGuarantee’s mandate and the lender’s focus on community-based financial services.
“Through this collaboration, PhilGuarantee strengthens its mission to provide risk mitigation mechanisms where Producers Bank continues its dedication to inclusive banking and community development. Together, we are creating meaningful pathways for individuals and families who aspire to build a secured and stable future,” Cornejo said.
PhilGuarantee president and CEO Alberto Pascual said the partnership would help broaden access to housing finance, particularly for communities served by Producers Bank.
“We recognize the role of the Producers Savings Bank in delivering financial services at a community level. This collaboration allows us to align efforts and extend the reach of our programs to more Filipinos,” he said.
PhilGuarantee said the facility is anchored on mutual trust between the two institutions and seeks to ensure that credit remains available and accessible despite shifts in market conditions.
