MANILA, Philippines – The Bangko Sentral ng Pilipinas said it will be extending regulatory relief to banks affected by Tropical Storm Seniang which hit the country last December.
The set of measures is aimed at helping banks and other financial institutions cope with the damage brought about by the typhoon to better assist their clients also devastated by the calamity.
The central bank said in a statement banks qualified to apply for the relief are those located in Occidental Mindoro, Palawan, Antique, Capiz, Iloilo, Negros Occidental, Bohol, Cebu, Siquijor, Eastern Samar, Leyte, Northern Samar, Samar (Western Samar), and Southern Leyte.
Those in the provinces of Zamboanga del Sur, Bukidnon, Camiguin, Lanao del Norte, Misamis Oriental, Compostela Valley, Davao del Norte, Davao Oriental, Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del Norte and Surigao del Sur may also ask for regulatory relief.
Seniang, which made landfall in the country last Dec. 28, killed 66 and injured 43. The government has estimated more than half a million persons were affected by the calamity.
The weather disturbance also devastated P552.38-million worth of roads, bridges, and other infrastructure, and P719.21-million worth of crops, livestock, and agriculture facilities.
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The relief measures, approved by the policymaking Monetary Board last Jan. 14, will allow thrift, rural, and cooperative banks to exclude the outstanding obligations of their borrowers in affected areas from the computation of past due ratios.
The central bank will also allow the decrease of said banks’ general loan loss provision from five percent to one percent for restructured loans of borrowers coming from affected areas.
At the same time, these banks may be exempted from penalties on legal reserve deficiencies, and for the delays in the submission of supervisory reports. Banks with ongoing rehabilitation programs will also be given a moratorium on their monthly payments due to the BSP.
The measures also include letting banks book allowance for probable losses on a staggered basis over a maximum of five years for loans given to borrowers hit by the tropical storm.
Banks will also be allowed to extend financial assistance to their officers and employees affected by the calamity outside their own fringe benefit programs.
For rediscounting banks, the BSP said they will be given a 60-day grace period to settle outstanding loans as of Dec. 29, and also they may restructure with the BSP current borrowings of clients affected by Seniang.
“These measures will be in effect for a defined period and override by additional specific and other prudential conditions,” the BSP said.
The BSP earlier extended the same relief measure to banks affected by Tropical Depression Agaton, and Typhoons Glenda, Luis, Mario, and Ruby, which all hit the country in 2014.
