The Bangko Sentral ng Pilipinas (BSP) strengthened its regulatory relief measures to further support banks and borrowers affected by calamities.
For the agriculture sector, the BSP issued Circular No. 1221 which encourages banks to offer borrowers from the sector loan payment deferments of up to 12 months.
Longer deferment periods may also be granted depending on the severity of the calamity’s impact.
The BSP said that in both cases, banks’ assessment should consider their historical experience, the actual production cycle, crop rehabilitation period, and borrower-specific circumstances, among other factors.
No additional charges will be imposed during the relief period.
The BSP said banks may now grant any borrower in calamity-affected areas a grace period of up to six months for loan repayments, institutionalizing a relief measure offered in January to victims of Typhoons Kristine, Leon, Ofel and Pepito.
The circular also stated when the victims—or potential victims—of specific calamities can claim relief for tropical cyclones that hit land or not, other natural hazards, or human-induced hazards.
To ensure the availability of cash during calamities, banks that are not yet members of PhilPaSSPlus or the BSP’s currency management system may withdraw cash directly from BSP regional offices and branches until Dec. 31, 2027.
This ensures continued funding for relief and recovery operations and local economic activity.
During calamities, banks may also temporarily ease identification requirements for opening accounts and conducting financial transactions, subject to certain conditions.
The flexibility allows affected individuals to receive or manage financial assistance and access essential banking services even when personal documents are lost or damaged.
The BSP said other relief measures that banks may avail of during calamities and implement within a specified period include financial assistance for their own affected officers and employees; temporary exclusion of loans of affected borrowers from past due and non-performing classifications; easier requirements for changes in banking schedules and temporary closures of banking offices, including delayed openings of approved branches; and staggered recognition of losses from physical assets impaired by calamities.
“By ensuring that banks can continue to provide essential services and assistance during times of crisis, we help protect the stability of the banking sector and the welfare of those who depend on it,” BSP Governor Eli Remolona Jr. said. (PNA)