Filtered By: Money

PCCI calls on BSP to incentivize lending to MSMEs amid COVID-19 pandemic

The Philippine Chamber of Commerce and Industry, the country’s largest business organization, on Saturday called on the Bangko Sentral ng Pilipinas (BSP) to incentivize lenders who will lend money to small and medium enterprises hit by the onslaught of the COVID-19 pandemic to restart their businesses.

“Kailangan natin ang BSP para tulungan ang mga bangko para ‘yung mga bangko makatulong sa mga small and medium enterprises natin...,” PCCI president Benedicto Yujuico said during the Laging Handa public briefing.

“Gusto namin sanang makita na merong incentive sila na magpautang because kailangan na kailangan natin ng credit sa mga small at medium sized enterprises para maka-restart ‘yung ating ekonomiya para makapag-hire tayo ng ating mga worker at magkaroon sila ng suweldo pambili ng pagkain, medisina at iba pa,” Yuijico said.

In a separate statement, the PCCI said it is proposing to the BSP to incentivize lenders to adopt the approach of deferring or restructuring loans of individual and corporate borrowers who are heavily burdened by the effects of the long community quarantine periods to arrest COVID-19 spread.

Rather than making loan deferment or restructuring mandatory, the central bank should consider the grant of regulatory relief measures such as the relaxation of rules on loan loss provisioning and staggered booking of loan loss provisions as proposed in House Bill No. 6815, the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill, Yujuico said.

During the lockdown, many PCCI member companies were unable to generate enough revenues to service their debts to banks, according to the business group.

The willingness of banks to restructure loan, Yujuico said, will breathe life back into businesses and preserve employment. —KG, GMA News