No mandatory loan moratorium, grace period in latest ECQ —BSP

The Bangko Sentral ng Pilipinas (BSP) will not issue a mandatory moratorium for loans during the latest reimposition of the strictest quarantine protocols.

According to the central bank, there will be no grace period for loans during the two-week enhanced community quarantine this month, but clients may approach their banks for financial relief.

“Banks and their clients may agree on loan terms that fit the bank’s financial capability and the client’s financing requirements,” it said in an emailed statement.

Metro Manila has been under ECQ since August 6, which will be in place until August 20, 2021, amid the surge in COVID-19 cases given the spread of the Delta variant.

The National Economic and Development Authority (NEDA) said the latest quarantine restrictions in the country would amount to weekly production output losses of P150 billion, and increase the number of poor by about 250,000.

The BSP said it has already urged supervised financial institutions to renew, restructure, or extend the terms of the loans of their clients, in consideration of their cash flows.

It also earlier granted relief measures to financial institutions in a bid to enable them to continuously provide financial services and support households and businesses amid the pandemic.

“The BSP continues to monitor the impact of the health crisis on the financial industry and the economy to promptly address any emerging risks and to support sustainable economic recovery,” it added.—AOL, GMA News