BSP: No debt payment moratorium during ECQ

MANILA, Philippines — Banks are encouraged to continue extending relief measures to clients as there is no new round of debt payment holiday during the week-long enhanced community quarantine (ECQ) in Metro Manila and nearby provinces until April 4, according to the Bangko Sentral ng Pilipinas (BSP).

The central bank urged BSP supervised financial institutions (BSFIs) to renew, restructure, and extend the terms of the loans of borrowers based on their continuing assessment of their cash flows amid the COVID-19 pandemic.

“The BSP has granted prudential relief measures to BSFIs to enable them to continue to provide financial services and support households and business amid the crisis,” the central bank said in statement.

It will be recalled that banks were mandated to extend a 30-day moratorium on loan payments under Republic Act 11469 or the Bayanihan to Heal as One Act (Bayanihan 1), and another 60 days under RA 11494 or the Bayanihan to Recover as One Act (Bayanihan 2). Both laws lapsed last year.

According to the BSP, the omnibus guidelines issued by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) last March 28 did not include the  extension of 30-day grace period provided for under Bayanihan 1.