BSP approves relief measures to help banks' customers amid typhoons

The Bangko Sentral ng Pilipinas (BSP) is implementing six regulatory relief measures to banks affected by the last typhoon “Ondoy” to extend the same reprieve to their own customers.

In a statement, the BSP said the Monetary Board on Saturday approved a package of relief measures to “enable (banks) to similarly assist and ease the financial burdens of bank customers adversely affected by tropical storm Ondoy.”

These relief measures which were also implemented after the past typhoons “Milenyo,” “Cosme,” and “Frank” are extended to all banks.

The Monetary Board, in its meeting Friday, also suspended all penalties for reserve deficiencies due to calamity-related conditions. In the meantime penalties related to the payments due to ongoing rehabilitation programs, and allowances for probable losses from credit exposures to individuals and business units directly affected by Ondoy will be allowed to be spread out over a maximum of five years, the BSP stated. “These measures will be in effect for a defined period and covered by additional specific and other prudential conditions.”

The six regulatory relief measures are:
(1) Excluding existing loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief;
(2) Reducing the 5 percent general loan loss provision to 1 percent for restructured loans of borrowers in the affected areas;
(3) Suspension of penalties for delays in the submission of supervisory reports;
(4) Allowing banks to provide financial assistance to their officers and employees who were affected by the calamity including those assistance
that may not be within the scope of the existing BSP-approved Fringe Benefit Program;
(5) Granting of a 60-day grace period to settle the outstanding rediscounting obligations as of 28 September 2009 with the BSP of all rediscounting banks in the affected areas;
(6) Allowing banks to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted loans of borrowers affected by the calamity.

BSP clarified that those eligible for relief measures are banks in areas declared under a state of calamity by the National Disaster Coordinating Council.

These areas have been identified as Mt. Province, Ifugao, Benguet, Pangasinan, La Union, Ilocos Sur, Isabela, Quirino, and Nueva Vizcaya. Also declared in need of emergency relief are Aurora, Nueva Ecija, Zambales, Pampanga, Bulacan, Tarlac, Bataan, Cavite, Laguna, Batangas, Rizal, Quezon, Mindoro (Occidental and Oriental) Marinduque, Catanduanes, Camarines Norte, and Camarines Sur.