Senator Grace Poe on Sunday said banks could expect protection from bad loans while the economy is on its way to recovery from the impact of the COVID-19 pandemic. With the proposed Financial Institutions Strategic Transfer (FIST) Act certified as urgent.
Poe, the bill’s
sponsor, said in a statement, “Banks play a critical role as they could throw a
lifeline to businesses and their workers amid the pandemic. Providing the local
banking system with the support it needs will insulate it from a buildup of bad
loans, which could impose costs on the poor.”
She also went
on, “We want to be better prepared for the economic impact of COVID-19 that has
no end yet in sight.”
The FIST bill attempt
to aid banks and financial institutions by allowing them to offload bad loans,
deal with the surge in non-performing assets (NPAs) and rehabilitate struggling
businesses.
The proposed measure has so far reached the Senate floor for deliberations.
The bill could
potentially free up P1.19 trillion worth of loans from the sale of NPAs to FIST
corporations, Poe had previously said.
She added, “Before
the banks can help MSMEs [micro, small and medium enterprises], we must help
the banks first.”
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