BSP issues relief measures for banks servicing ‘Santi’ victims in Luzon
INQUIRER FILE PHOTO
MANILA, Philippines — The central bank has announced a set of regulatory relief measures for local banks in certain parts of Northern and Central Luzon that were affected by bad weather earlier this month.
In a statement, the BSP said the relief measures would “assist and ease the financial burden of bank customers adversely affected by typhoon Santi, which devasted parts of the country from October 11 to 13.”
For all banks in affected areas, the BSP said it would allow companies to provide financial assistance to their officers and employees who were affected by the typhoon.
These include assistance programs that may not be within the scope of the BSP’s list of approved fringe benefits.
For banks with rediscounted loans with the BSP, the regulator said it would grant a 60-day grace period for the settlement of outstanding obligations starting October 13. Banks will also be allowed to restructure their rediscounted loans of borrowers affected by the calamity.
Measures approved by the BSP’s Monetary Board (MB) just for thrift and rural banks include the exclusion of existing loans of borrowers in affected areas from the computation of past due ratios, provided these are restructured by banks.
The BSP said it would reduce the 5 percent general loan loss provision to 1 percent for restructured loans of borrowers in affected areas. Penalties on legal reserve deficiencies with head office or branches in affected areas would also be waived.
The BSP said it also approved a moratorium on monthly payments due to the BSP for banks with ongoing rehabilitation programs.
Monetary penalties for delays in the submission of supervisory reports would also be waived, the BSP said.
Banks in Pangasinan, Isabela, Nueva Vizcaya, Quirino, Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales, Laguna, and Rizal are covered by the relief measures.
Since 2011, the BSP has approved similar relief measures for banks affected by various typhoons. Banks affected by Sendong, Pedring, Mina, and Juaning in 2011, the southwest monsoon, typhoons Helen, Gener, Pablo, and Quinta in 2012, and typhoon Labuyo, and Maring in 2013 were granted relief measures by the BSP.
RELATED STORIES:
‘Santi’ leaves behind billions in damage, losses in C. Luzon
P2B palay lost in ‘Santi’ onslaught — DA
Philippines cleans up after Typhoon ‘Santi’
