President Rodrigo Duterte witnessed the signing of the MOA between the Government Service Insurance System (GSIS) and the DepEd.
According to the Presidential Communications Operations Office, the GSIS financial assistance loan (GFAL)program is in line with administration's goal to help the country's teachers.
“We don’t want DepEd employees to sink deep into debt, so we have proposed a better way for them to manage their finances. The borrowers will pay back the loan to GSIS at easy and affordable terms,” GSIS President and General Manager Jesus Clint Aranas said.
Aranas said future GSIS benefits could suffer if an employee does not pay back loans.
Under the agreement, the DepEd shall prioritize the management of GSIS loans over and above the payment of loans taken by DepEd personnel from lending institutions as well as the deductions from its payroll of the monthly amortization due on the loans they have taken and their GFAL until those loans are fully paid.
For its part, the GSIS should complete the policy documentation in 30 days upon the execution of the agreement.
GFAL will be piloted for six months in 12 areas across the country, including Batangas, Bulacan, Dagupan, Naga, Cavite, Manila, Quezon City, Bohol, Ormoc, Koronadal, Butuan and Tagum.
Source: CNN PHILIPPINES