In a bid to thwart any economic drag triggered by natural calamities, President Arroyo ordered on Saturday a comprehensive package of financial relief to distressed individuals, small and medium enterprises, and other critical entities in affected areas.

As the country struggles to cover from the nightmare of Tropical Storm Ondoy, the President said the four measures, including a one-year repayment moratorium in all salary and housing loans in Government Service Insurance System (GSIS) and Social Security System (SSS) as well as refinancing of bank loans, sought to inject liquidity into the market and sustain domestic consumption as the country struggles to recover from the devastation.

Mrs. Arroyo virtually endorsed the P86-billion economic stimulus plan made by Albay Governor Joey Salceda to prevent any social and economic damage following the onslaught of storm Ondoy last week. Salceda said these were the same measures carried out by the Albay local government when the province endured huge and severe damage from two strong typhoons in 2006.

“We are very hard at work to keep liquidity, to keep consumption spending, to keep investments,” she said over state-run television, shortly before convening the National Disaster Coordinating Council (NDCC) meeting at Camp Aguinaldo in Quezon City.

First, the President said she has talked to SSS President Romulo Neri and GSIS President Winston Garcia to implement a repayment deferral system for salary and housing loans of its members for one year. “This can provide up to P32 billion liquidity because they will have higher take-home pay if they are not going to pay for one year,” she said.

Second, the President recommended to the Bangko Sentral ng Pilipinas to set up a five-year special rediscounting window for banks to refinance loan exposures to individuals, entrepreneurs, and SMEs.

Mrs. Arroyo said she has directed Trade Secretary Peter Favila to make such recommendation to the Monetary Board, the policy making body of the BSP, on Monday.

Salceda earlier said the P35-billion refinancing plan of bank loans would have minimal impact on deficit of the national government.

Third, the President also asked Vice President Noli de Castro to implement an incremental home-loan improvement of P150,000 for loan-eligible members of Pag-IBIG which suffered damages to their homes.

Lastly, the President approved a three-month advance of monthly average reimbursement by PhilHeath to its accredited outlets, including government-run hospitals, that could reach P4 billion.

As the government and private sector link arms in relief and rehabilitation efforts, the President said her administration will also continue to “work aggressively” to stimulate economic growth and generate jobs for Filipinos.

She said the government will also accelerate spending on social services and infrastructure, including repair of damaged roads, bridges, and other facilities, to further boost domestic economy. The government will also sustain its P100-billion partnership with the private sector in infrastructure development.

“We will not be deterred in our effort to maintain growth,” she said, citing the P10-billion supplemental budget pending in Congress to rebuild the calamity areas.

“We have to continue to promote trade, investments and to promote liquidity so people will continue consumption,” she added.