Banks ready relief measures for borrowers

MANILA, Philippines — Banks are preparing relief measures for individual and corporate borrowers, particularly small and medium enterprises (SMEs) affected by the impact of the enhanced community quarantine in Luzon amid rapid spread of the coronavirus disease 2019 or COVID-19.

“To further alleviate the plight of our businesses and their workers, banks are also extending flexible arrangements to borrowers who need critical support during these extraordinary times,” Bankers Association of the Philippines managing director Benjamin Castillo said.

Castillo said member banks are committed to provide availability of cash through ATMs and digital platforms to facilitate the payments of goods and services.

“In our efforts to support the local economy, the national government and the banking public in the fight against COVID-19, the banking community and their people are in the front lines to help ensure the delivery of banking services.

On the other hand, the Chamber of Thrift Banks (CTB) said member banks are prepared to offer payment arrangements to affected clients upon their request to help ease their burden.

“Payment arrangements will vary by bank and may be designed on a case-to-case basis to address their clients’ specific needs and cash flow situation. These may come in the form of waiver of penalties or late charges, discounted fees, reduced loan amortization, reprieve on principal payments, or extension of loan terms, which may require restructuring of loans to provide for additional funds for consumption and /or working capital,” CTB said.

To explore possible payment arrangements, the group added clients may contact their bank directly.

“We remain committed to continuing to service our clients and supporting the viability of the banking industry during this difficult time,” the chamber said.

The Bangko Sentral ng Pilipinas (BSP) urged banks to extend debt relief to individual and corporate clients especially SMEs suffering from the slowdown or closure of their businesses and /or employment because of the COVID-19 outbreak and enhanced community quarantine.