SEC calls on lending, financing companies to offer debt relief
The Securities and Exchange Commission (SEC) is encouraging all lending and financing companies to adopt measures that will help borrowers cope with the challenges arising from the COVID19 pandemic.
In a notice dated March 23, the SEC lined up debt relief measures that financing and lending companies may adopt such as: lowering of interest rates, waiver or reduction of penalties, charges, and other fees, loan term extension, suspension of collection, payment holiday and debt consolidation.
“We call on financing and lending companies to adopt all possible measures that will help ease the burden of their borrowers amid this public health emergency, which has disrupted the everyday lives of Filipinos, including their livelihoods,” SEC chair Emilio Aquino said in a press statement on Tuesday.
A number of financing and lending companies have now adopted debt relief measures. For one, the Philippine Finance Association has informed the SEC that at least 18 of its members have allowed the extension of payment deadlines, without penalties and fees, for borrowers.
Earlier, a number of banks announced a 30-day grace period for the payment of consumer and small business loans. BDO Unibank announced a 60-day grace period.
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