Bangko Sentral to adopt package of relief measures

MANILA, Philippines – The Bangko Sentral ng Pilipinas is set to adopt a package of relief measures for banks to enable them to extend assistance to bank customers adversely affected by tropical storm “Ondoy.”

In a statement, the central bank said the Monetary Board approved a package of relief measures for commercial, rural, and thrift banks as well as cooperative banks to help ease the financial burdens of bank customers.

As part of the temporary relief measures, the existing loans of borrowers in affected areas would be excluded from the computation of past due ratios provided these are restructured or given relief.

Furthermore, the general loan loss provision for restructured loans of borrowers in affected areas would be reduced to one percent from five percent. The penalties for delays in the submission of supervisory reports were also suspended.

Entitled to the relief measures are banks located in the National Capital Region, Mt. Province, Ifugao and Benguet, Pangasinan, La Union, Ilocos Sur, Isabela, Quirino, Nueva Vizcaya, Aurora, Nueva Ecija, Zambales, Pampanga, Bulacan, Tarlac, Bataan, Cavite, Laguna, Batangas, Rizal, Quezon, Mindoro Occidental, Mindoro Oriental, Marinduque, Catanduanes, Camarines Norte and Camarines Sur.

Banks in these areas would also be allowed to provide financial assistance to their officers and employees who were affected by the calamity. The assistance will include those that may not be within the scope of the existing BSP-approved Fringe Benefit Program.

The central bank also granted a 60-day grace period to settle the outstanding rediscounting obligations as of Sept. 28 with the BSP of all rediscounting banks in the affected areas.

The relief measures would also allow banks to restructure with the BSP the outstanding rediscounted loans of borrowers affected by the calamity.

The MB also extended relief measures to rural banks, thrift banks, and cooperative banks including the suspension of penalties for reserve deficiencies arising from calamity-related conditions as well as the penalties related to the payments of these banks from ongoing rehabilitation programs.

The MB also allowed banks to spread out over a maximum of five years the allowances for probable losses from credit exposures to individuals and business units directly affected by the tropical storm.

These measures would be in effect for a defined period and covered by additional specific and other prudential conditions.

The central bank’s Monetary Board also extended relief measures to thrift and rural or cooperative banks located in the provinces that were hit by other destructive typhoons such as “Milenyo,” “Cosme,” and “Frank.” –Lawrence Agcaoili (The Philippine Star)