SUMMARY
This is AI generated summarization, which may have errors. For context, always refer to the full article.
MANILA, Philippines – Banks in areas devastated by Typhoon Glenda (Rammasun) may avail of regulatory relief package from the Bangko Sentral ng Pilipinas (BSP).
The BSP’s Monetary Board has allowed the banks to extend financial assistance – within or outside the Fringe Benefit Program – to employees affected by the typhoon.
Also, it granted the banks a 60-day grace period to settle their outstanding rediscounting obligations as of July 14, and allowed them to restructure, on a case-to-case basis, the outstanding rediscounted loans of borrowers affected by the calamity.
These measures would be in effect for a defined period and covered by additional specific and other prudential conditions, the BSP said.
A separate set of measures were granted to thrift, rural and cooperative banks. These include:
- Excluding existing loans of borrowers in affected areas from the computation of past due loan ratios provided these are restructured or given relief
- Reducing the 5% general loan loss provision to 1% for restructured loans of borrowers in the affected areas
- Non-imposition of penalties on legal reserves deficiencies of such banks with head office and/or branches in the affected areas
- Moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs
- Subject to BSP approval, booking of allowance for probable losses on a staggered basis over maximum of 5 years for all types of credit extended to individuals and businesses directly affected by the calamity; and
- Non-imposition of monetary penalties for delays in the submission of supervisory reports
Similar relief measures were extended by the BSP to banks in cities and provinces that were affected by previous typhoons Yolanda, Santi, Labuyo; southwest monsoon (habagat) rains enhanced by Tropical Storm Maring; and the magnitude 7.2 earthquake in Sagbayan, Bohol in 2013.
Based on a situational report of the National Disaster Risk Reduction and Management Council on July 24, the following cities and provinces were affected by Glenda:
| Region | Cities / Provinces |
| National Capital Region (NCR) | Caloocan City, Las Piñas City, City of Manila, Malabon City, Mandaluyong City, Marikina City, Muntinlupa City, Navotas City, Parañaque City, Pasay City, Pasig City, Quezon City, Taguig City and Valenzuela City |
| I | Ilocos Norte and Pangasinan |
| III | Aurora, Bataan, Bulacan, Pampanga, Tarlac, and Zambales |
| IV-A | Batangas, Cavite, Laguna, Quezon and Rizal |
| IV-B | Marinduque, Occidental Mindoro, Oriental Mindoro and Romblon |
| V | Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate and Sorsogon |
| VIII | Eastern Samar, Leyte, Northern Samar and Western Samar |
– Rappler.com
Add a comment
How does this make you feel?
There are no comments yet. Add your comment to start the conversation.