In a report to President Gloria Macapagal-Arroyo, the SSS explains that to “ensure that loans are paid on time, the guidelines of the salary loan program provide that only those members with capacity to pay are allowed to borrow. This means they have to be currently employed and are actively contributing.”
This was the agency’s reaction to protests over the disqualification of displaced and unemployed members from securing loans from the System.
The SSS pointed out that under the law, it is authorized to invest only 10 percent of its funds in short loans such as calamity, salary, emergency and other loans.
The SSS also informed President Arroyo that it is undertaking both short-term and long-term mitigation programs to help displaced members. (PIA)
