BSP extends relief to typhoon-hit banks

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has extended regulatory relief and rediscount relief measures to banks located in areas affected by Typhoon Ineng that entered the country last August.

Entitled to the relief are banks in provinces in Northern and Central Luzon as well as the Cordillera Autonomous Region (CAR) devastated by Typhoon Ineng identified by the National Disaster Risk Reduction and Management Council (NDRRMC).

These include Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Batanes, Cagayan, Isabela, Nueva Vizcaya, Bataan, Bulacan, Nueva Ecija, Zambales, Laguna, Oriental Mindoro, Abra, Apayao, Baguio City, Benguet, Ifugao, Kalinga, and Mountain Province.

The BSP approved the temporary relief measures for the thrift banks as well as rural and cooperative banks last Sept. 23.

To help affected banks, the BSP would exclude outstanding loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief.

Likewise, the five percent general loan loss provision would be reduced to one percent for restructured loan borrowers while penalties on legal reserves deficiencies of banks operating in affected areas would not be imposed. 

Furthermore, the BSP said allowance for probable losses could be booked on a staggered basis over a maximum of five years for all types of credits extended to individuals and businesses directly affected by the calamity.

The BSP also agreed to impose a moratorium on monthly payments due to BSP for banks with ongoing rehabilitation and would not impose monetary penalties for delays in the submission of supervisory reports.

For the rediscount relief measures, the BSP granted a 60-day grace period to all rediscounting banks in affected areas to settle their outstanding obligations as of Aug. 18 with the BSP. 

It has also allowed banks to restructure with the BSP the outstanding rediscounting loans of end-user borrowers affected by the disaster.