BSP offers loan relief amid energy crisis
Borrowers and banks strained by the economic fallout from the Middle East crisis may access temporary loan relief, the Bangko Sentral ng Pilipinas (BSP) said, as it urged lenders to lower the cost of online fund transfers during the difficult period.
In Memorandum No. M-2026-014 signed on April 14, Gov. Eli Remolona Jr. outlined regulatory relief measures that banks and their clients may use to cushion the impact of the US-Iran war, which has rattled global energy markets and stoked inflation.
The measures include temporary grace periods of up to six months for loan payments of affected borrowers and the deferment of agricultural loan payments for up to one year, subject to banks’ assessment.
Loans to affected borrowers may also be excluded from past-due and nonperforming classifications for up to a year, easing the need for lenders to immediately set aside capital to cover potential credit losses.
Inception date
The central bank said the measures support President Marcos’ declaration of a national energy emergency in response to the oil price shock.
For purposes of the relief, the inception date is March 24, the day the emergency was declared. Banks may use the relief within one year of that date, subject to notification, documentation and reporting requirements.
The BSP said that lenders must ensure that relief is extended only when there is evidence of financial strain or weaker repayment capacity linked to the energy emergency. It added that the measures should remain targeted, proportionate and consistent with safe and sound banking practices.
Remolona first signaled the plan to offer relief after the Monetary Board’s surprise policy meeting on March 26, when the central bank kept its benchmark interest rate at 4.25 percent despite rising price pressures.
The regulator also said it “strongly” urges financial institutions to temporarily suspend fees and charges imposed on the use of online banking platforms or electronic money services, including transactions via Instapay or PesoNet, to help ensure continued access to banking services during the energy emergency.
“Any regulatory relief measures granted to affected borrowers shall be implemented in accordance with terms and conditions mutually agreed upon by the BSP-supervised financial institutions and their borrowers,” the central bank said.
