MANILA - The Bangko Sentral ng Pilipinas said it would no longer issue a mandatory moratorium or grace period for loans during the 2-week lockdown but clients could ask their banks for relief.
"Bank clients may continue to approach their banks for financial relief even if the Bangko Sentral ng Pilipinas (BSP) will not issue a mandatory moratorium or grace period for loans during the Enhanced Community Quarantine from 06 to 20 August 2021," the BSP said in a statement over the weekend.
Metro Manila will be under enhanced community quarantine (ECQ) from Aug. 6 to Aug. 20 while other neighboring areas will be under MECQ until Aug. 15.
Financial institutions supervised by the central bank were urged to renew, restructure or extend clients' terms of loans "in consideration of their cash flows," the BSP said.
Banks and clients may also agree on loan terms that fit the bank's financial capability and client's financing requirements, it added.
The central banks said it has earlier granted prudential relief to financial institutions under its supervision to allow them to continuously provide financial services to households and businesses during the pandemic.
The BSP earlier reduced the reserve requirement ratio (RRR) for banks which injected trillions of pesos to the market. It has also kept the key interest rate, used by banks to price loans, at its lowest level of 2 percent.