Money

Wala ng tawad! BAP agrees to 1-month grace period for loans, but not one year

The Bankers Association of the Philippines is supporting anothet 30-day moratorium on loan payments in areas under MECQ and ECQ as it thumbed down a proposal to extend the grace period for one year.

BAP said anything longer than one month is a potential nightmare.

Bangko Sentral ng Pilipinas Governor Ben Diokno and Finance Secretary Sonny Dominguez likewise rejected the yearlong payment freeze proposed under the Bayanihan 2 Act.

“We have to ensure the stability and robustness of the banking system in order to help our economy pave the way towards recovery,” BAP managing director Benjamin Castillo said in a statement.

A longer moratorium “will impact the liquidity of the financial system and may put certain banks at risk,” he added.

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