Borrowers can ask banks to consider delaying loan repayments even without a mandatory moratorium during the ongoing foreclosure to fight the coronavirus pandemic, according to the central bank.
In a statement, the financial regulator said that bank customers “could continue to solicit their banks for financial relief even if the Bangko Sentral ng Pilipinas (BSP) does not issue a mandatory moratorium or grace period for them. loans during the reinforced community quarantine from August 6. to August 20.
The BSP urged supervised financial institutions to renew, restructure or extend the terms of their clients’ loans taking into account their cash flow.
“Banks and their customers can agree on loan terms that are suited to the bank’s financial capacity and the customer’s financing needs,” he said.
The BSP has previously granted prudential relief measures to supervised financial institutions to enable them to continuously provide financial services and to support households and businesses amid the pandemic.
“The BSP continues to monitor the impact of the health crisis on the financial sector and the economy to quickly address any emerging risks and support a sustainable economic recovery,” the central bank said.
The current more flexible approach follows last year’s rules, which imposed a mandatory, non-extendable 60-day grace period on financial institutions supervised by BSP on loan payments under the Bayanihan to Recover as One Act. .
This previous 60-day loan repayment moratorium was meant to help consumers and businesses get out of the crisis.
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