Special Rediscounting Loans to Refinance Loans by Small and Medium Enterprises
October 14, 2009 by BizMind
Filed under Business News
Special rediscounting loans for banks to refinance loans by small enterprises hit by Typhoon “Ondoy” and “Pepeng” is now being considered by Bangko Sentral ng Pilipinas. The P5-billion budget are in addition to the P5-billion the central bank recently approved with the backing of Malacañang.
Though only P5 billion of the P35-billion proposed by presidential adviser Albay Governor Joey C. Salceda and noted by Malacañang is approved by the BSP, the central bank is again reviewing the special rediscounting loans and may increase the facility by another P5 billion to help microfinance, small and medium enterprises devastated by “Ondoy” and “Pepeng.”
As part of BSP’s package or relief measures for banks with branches affected by the typhoon, the central bank granted a 60-day grace period to all banks with rediscounting loans as of September 28. This will cover all rediscounting banks with head office or with branches or with end-user borrowers in the affected areas except those with serious violations of findings with the BSP’s supervision and examination sector.
The BSP will also allow rediscounting banks to restructure loans with the BSP on a case-to-case basis the outstanding rediscounted loans of their end-user borrowers affected by the calamity, subject to the terms and conditions stated in the implementing guidelines.
The total proposed government relief package is P86 billion. Aside from the P35-billion five-year special rediscounting window for banks to refinance loans of small borrowers, Salceda also recommended a one-year repayment moratorium for P32 billion worth of salary and housing loans of Government Service Insurance System and Social Security System member and the granting of P15 billion home loans for eligible members of the Home Development Mutual Fund or Pag-IBIG. Also proposed is the release of three-month advances of monthly average reimbursement by Philippine Health Insurance Corp. amounting to P4 billion.
If properly manage, this government relief package is a big help to the small and medium enterprises to emerge from the floods of uncertainty and avert businesses downfall that will hinder, if not paralyze, the growing Philippine economy.
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