BSP sees 'no further extension' of 60-day loan reprieve under Bayanihan 2


Posted at Sep 21 2020 10:54 AM | Updated as of Sep 21 2020 11:15 AM

Watch more on iWantTFC

MANILA - Bangko Sentral ng Pilipinas Gov. Benjamin Diokno said Monday it is unlikely for banks to extend another loan reprieve following the mandatory one-time 60-day grace period under the Bayanihan 2 law.

The loan moratorium, which takes effect immediately and was extended to individuals and entities under the Bayanihan to Recover as One is likely the last, Diokno told ANC.

Diokno said the moratorium should apply to salary loans, housing loans and car loans, among others, which are payable today until the end of the year. 

"It’s one-time, mandatory and non-extendable. We are expecting that there would be no further extension as far as the 60-day grace period is concerned," Diokno said.

Diokno said the BSP proposed a 30-day grace period for loans but bankers and lawmakers agreed on 60-days calling it "manageable."

The BSP is also pushing for the passage of the Financial Institutions Strategic Transfer (FIST) bill which aims to help banks offload bad loans. The measure is just "anticipatory."