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SEC asks finance firms to offer borrower relief
The Securities and Exchange Commission (SEC) is urging all lending and financing companies to implement debt relief measures for borrowers affected by the coronavirus pandemic.
The SEC's Notice suggests various options such as reducing interest rates, waiving penalties and fees, extending loan terms, suspending collections, and offering payment holidays.
Companies are also encouraged to develop their own unique relief programs tailored to their borrowers' needs.
SEC Chairperson Emilio B. Aquino emphasized the need to ease the burden on borrowers whose livelihoods have been disrupted by the health emergency.
Several financing and lending companies have already begun offering debt relief measures, with at least 18 members of the Philippine Finance Association extending payment deadlines without penalties or fees.
Earlier, a number of banks announced a 30-day grace period for consumer and small business loans, with BDO Unibank offering a 60-day grace period.
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News Sources
See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
Senator Bong Go urged banks and financial institutions to avoid raising loan interest rates during the enhanced community quarantine to alleviate the financial strain on citizens and businesses.
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Major Philippine banks are extending loan payment grace periods to help clients cope with the economic impact of the COVID-19 pandemic and the enhanced community quarantine.
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Microfinance institutions (MFIs) in the Philippines are implementing a loan payment moratorium for their nine million microentrepreneur clients in response to the COVID-19 crisis and the resulting enhanced community quarantine.
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SB Corp. is offering MSMEs a one-month moratorium on loan payments from March 16 to April 14, 2020, as a response to the economic impact of the COVID-19 pandemic.
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Major Philippine corporations, including San Miguel Corp. and BDO Unibank, have postponed their significant fundraising activities due to the economic uncertainty caused by the COVID-19 pandemic and the enhanced community quarantine in Luzon.
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