(Eagle News) – The Bangko Sentral ng Pilipinas (BSP) extended a regulatory relief package to banks and other BSP-supervised financial institutions (BSFI) to help cushion the potential impact of COVID-19 on their operations.
The relief package was provided for in Memorandum No. M-2020-008, issued by the BSP shortly after its Monetary Board approved the granting of temporary relief and rediscounting relief measures to BSFIs.
In a statement, the BSP said that it “recognizes the potential significant impact of the Corona Virus Disease 2019 (COVID-19) to the general public, including individual and corporate clients and employees of BSP supervised financial institutions (BSFIs).”
“Relief is granted to BSFIs to enable them to extend the same relief measures to their clients, borrowers and employees,” the statement added.
Under the package, BSFIs may ask for a moratorium on monthly payments due to the BSP, and will not be imposed penalties for delayed submission of prudential reports, for a period of six months.
It will also allow BSFIs to extend financial assistance to their officers affected by COVID-19, and exclude their borrowers from past due loan ratios.
BSFIs may also request for a waiver of BSP’s documentary requirements for restructured loans, and implement a staggered booking of allowance for credit losses, for loans extended to borrowers affected by COVID-19.
Rediscounting banks will also be given a 60-day grace period to settle their obligations with the BSP.
BSFIs may avail of the regulatory relief measures one year from March 8, 2020, the date when President Rodrigo Duterte declared a public health emergency over COVID-19.
BSFIs must submit to the BSP a letter-notification, stating the specific relief measures to be availed of, and a Board resolution authorizing the BSFI to avail of the package.
(Eagle News Service)