State-run Philippine Guarantee Corp. (PhilGuarantee) has signed a P1-billion housing retail guarantee facility with Producers Savings Bank Corp., Philstar Biz reported. The partnership aims to expand access to housing finance while helping banks manage credit risks.
Under the agreement, PhilGuarantee will provide guarantee coverage on housing loans originated by Producers Bank, reducing the lender's risk exposure and enabling it to extend more affordable financing to homebuyers. The facility is expected to benefit low- to middle-income families seeking affordable housing options.
The deal aligns with the government's push to address the country's housing backlog by leveraging public-private partnerships. PhilGuarantee, a government-owned corporation, has been actively expanding its guarantee programs to support priority sectors such as housing and agriculture.