MANILA – Financial institutions are bracing for the end of the two-month pandemic-related loan payment moratorium this December and borrowers need to coordinate with their banks for any issue on borrowings, a bank executive said Wednesday.
In a virtual briefing, Union Bank of the Philippines president and chief executive officer (CEO), Edwin Bautista, said they wanted to find out if borrowers would pay their loans after the 60-day loan payment moratorium mandated by the Bayanihan to Recover as One Act or Bayanihan 2.
Bautista said banks would normally be worried, especially if they have a large volume of borrowers from a particular sector.
He, however, underscored the importance of educating the customers since some people misunderstood the law by thinking that amortizations for those two months have been “forgiven” or have been waived.
“You have to also come up with flexible restructuring deals with the customers,” he said, noting “the secret is to proactively talk with the customer.”
He also advised borrowers not to close their communication lines with the banks because financial institutions are looking for ways to help them.
“The BSP (Bangko Sentral ng Pilipinas) has given us a lot of leeway in terms of how we can restructure the debt. So together, let us take advantage of this because we don’t want to take over your house,” he added, referring to the house as among the loan collaterals.
Bank lending further slowed last October after it expanded by 1.9 percent, excluding banks’ placements with the BSP’s reverse repurchase (RRP) facility, from 2.6 percent in the previous months.
Monetary authorities said banks have remained cautious on their lending business given the impact of the pandemic. (PNA)
