MANILA - Measures have been filed in both chambers of Congress that would help banks offload their non-performing loans, the Bangko Sentral ng Pilipinas said Monday.
BSP Governor Benjamin Diokno said the incentives of the measure, which would be similar to the Special Purpose Asset Vehicle (SPAV) Act of 2002, would be limited to 2 years.
"Dapat maiksi lang, hindi lingering ang SPAV kasi it creates another incentive na hindi maganda," he told ABS-CBN's Teleradyo.
(The SPAV should be short, not lingering because it creates another incentive that is not good.)
"'Di namin inaasahan na marami tayong non-performing loans but mabuti nang nakakasa na siya."
(We did not expect to have many non-performing loans but it's good the measure is ready.)
In May, the House of Representatives' Defeat COVID-19 Committee (DCC) approved the House Bill No. 6622 or the Philippine Banking Industry Resiliency Act against COVID-19 pandemic. The measure was received by the Senate on June 3, according to the House's official website.
The bill grants tax exemptions and reduced registration and transfer fees on certain transactions involving non-performing assets, which is composed of non-performing loans, real estate and other properties acquired by the financial institution.
Teleradyo, BSP, Bangko Sentral ng Pilipinas, Benjamin Diokno, non-performing loans, non-performing assets, SPAV, Special Purpose Asset Vehicle