The Philippines central bank is allowing financial institutions to provide borrowers with extended loan payment timelines. This relief measure, aimed at supporting those affected by the energy crisis, includes grace periods of up to six months for general loans and one year for agricultural loans, pending bank assessments.
Additionally, banks may temporarily refrain from classifying these extended loans as past due or non-performing. The Bangko Sentral ng Pilipinas (BSP) emphasized that these measures should be prudently managed and extended only to borrowers whose repayment capacity has been significantly impacted by the energy emergency.
The BSP also encouraged banks to suspend online transaction fees to reduce costs for consumers and businesses. This comes as President Ferdinand Marcos Jr. previously suspended excise taxes on kerosene and liquefied petroleum gas to alleviate the burden of rising fuel prices.