Reforms to ensure PH economy will emerge stronger from pandemic

A slew of reforms currently being prepared by the government—including proposed laws that will help companies deal with bad debt—will help ensure that the Philippines emerges from the pandemic on firmer economic footing.

Thus said the head of the Bangko Sentral ng Pilipinas (BSP) who stressed that policymakers were “exerting enormous effort to help the economy and the Filipino people survive” the coronavirus pandemic and for the country to emerge “better, stronger, more inclusive, technologically prepared and more competitive than before.” Speaking via videoconference to members of the Bank Marketing Association of the Philippines, Governor Benjamin Diokno said the central bank was pushing for laws that would accelerate recovery and improve the structural makeup of the economy.

Among these laws are the Financial Institutions Strategic Transfer or FIST bill, which will help banks unload bad assets; the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery or GUIDE bill, which will provide assistance to distressed firms that are critical for economic recovery; amendments to the Agri-Agra law to rationalize the way banks can support agriculture development; amendments to bank secrecy laws to aid antimoney laundering and antitax evasion efforts, and promote integrity in governance, and amendments to the Credit Information System Act to ease credit access of micro, small and medium enterprises.

At the same time, the central bank chief said the regulator continued to refine monetary policy and banking regulations.

In relation to price stability, the BSP last month started issuing its own securities as allowed under its recently amended charter—a policy that would help it better manage liquidity in the local financial system.

“On financial stability, we are committed to a dynamic regulatory environment that reflects an ever-changing landscape for our supervised entities,” Diokno said.