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BSP gives banks in flood-ravaged areas relief


Banks in areas affected by the recent flooding and landslides are exempted from the regulatory requirements of the Bangko Sentral ng Pilipinas, and their officers and employees may be given financial assistance outside the central bank-approved Fringe Benefit Program. Central bank Deputy Gov. Nestor Espenilla Jr. said the central bank's Monetary Board approved in a Jan. 20 resolution the regulatory relief for banks in Regions lV-B, V, Vl, Vll, Vlll, X, Xl, Xll, CARAGA, and Autonomous Region of Muslim Mindanao. Part of this exemption is a separate relief package involving past due loans of borrowers in affected areas, which would no longer be included in the soured loans ratio of banks in the affected regions, which covers loans falling due from Dec. 31, 2010 to Dec. 31, 2011, Espenilla said. The central bank will also ease the 5 percent general loan loss provision to 1 percent for restructured loans, and penalties on legal reserve deficiencies of thrift, rural, and cooperative banks with head offices or branches in the affected areas will not be imposed, the central bank said. On the monthly payments due to the BSP, the central bank has declared a moratorium without penalty until June 30, 2011 for banks with ongoing rehabilitation programs. For rediscounting loans, Espenilla said the central bank agreed to a 50-day grace period to settle outstanding rediscounting obligations as of Dec. 29, 2010 and allowed banks to restructure with the BSP the outstanding rediscounted loans of their borrowers. The National Disaster Risk Reduction and Management Council said the areas affected by the calamity were Palawan, Albay, Sorsogon, Camarines Sur, Catanduanes, Negros Occidental, Cebu, Bohol, Negros Oriental, Siquijor, Southern Leyte, Eastern Samar, Western Samar, Northern Samar, Leyte, Lanao del Norte, Misamis Occidental, Compostela Valley, Davao del Norte, Davao del Sur, Davao Oriental, South Cotabato, Surigao del Norte, Surigao del Sur, Agusan del Norte, Agusan del Sur, and Maguindanao. — VS, GMA News

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