Duterte calls on BSP to provide regulatory relief to MSMEs

President Rodrigo Duterte on Monday called on the Bangko Sentral ng Pilipinas (BSP) to provide regulatory relief for micro, small, and medium enterprises amid the coronavirus pandemic.

In his State of the Nation Address (SONA), Duterte cited the need to provide assistance to MSMEs belonging to the most hit sectors.

"I also enjoin the Bangko Sentral ng Pilipinas and the banks operating in the country to provide regulatory relief for our MSMEs and allow loan payment extension without incurring penalties and charges," he said.

"We need your help to prevent the collapse of companies either with accumulated amortization and payables caused by closure of their businesses at the height of the strict quarantine periods," added Duterte.

In May, Trade Secretary Ramon Lopez said over 525,000 or 52.66% of MSMEs in the country had to stop operations due to the lockdowns.

Latest data from the Department of Trade and Industry (DTI) show that MSMEs account for 99.52% of the total 1.003 million business establishments in the country in 2018.

Micro enterprises are defined as those with total assets worth less than P50,000; cottage enterprises with assets worth P50,001 to P500,000; small with P500,001 to P5 million; and medium from over P5 million to P20 million.

To recall, the central bank in March committed to remit P20 billion to the national government in support of efforts against COVID-19.

It also purchased P300 billion worth of government securities to support government programs against the spread of COVID-19.

The BSP has also so far cut key interest rates by a total of 175 basis points this year: 25 basis points in February, and 50 basis points each in April, May, and June. — BM, GMA News