Two native enterprise teams on Tuesday voiced assist for the proposed restrict on bank card rates of interest and a 60-day moratorium on loan funds.
In separate statements, the Administration Affiliation of the Philippines (MAP) and the Bankers Affiliation of the Philippines (BAP) mentioned this proposal would vastly assist companies and people affected by the coronavirus pandemic.
“The BSP (Bangko Sentral ng Pilipinas) Governor’s proposal, coupled with the 60-day payment deferment under the Bayanihan to Recover as One Act (Bayanihan 2), will provide big relief to businesses and individuals using credit cards, many of whom have found themselves jobless as a result of the pandemic,” MAP President Francis Lim was quoted as saying in his group’s assertion.
In a draft round, BSP Governor Benjamin Diokno pushed for the imposition of a most annual rate of interest of 24 % for credit-card cash advances and installment purchases, which shall be reviewed each six months.
“We understand that the [BAP] is supportive of the proposal, and that is a clear indication how the banking industry is bending over backward to help our countrymen during this critical period,” Lim mentioned.
MAP hopes that the ratification of Bayanihan 2 will assist companies recuperate from the pandemic, he added.
BAP President Cezar Consing mentioned his group welcomed “this initiative of the BSP and hope that this collective effort of the banking industry will help ease the burden of our credit cardholders during these challenging times.”
Diokno earlier mentioned the proposal was truthful, because the BSP already lowered its key rates of interest to its lowest degree to this point this yr.
“I think it is in the sense of fairness, right? The BSP has been cutting the interest rates. In fact, the policy rate is now 2.25 percent. That’s the lowest ever rate I’ve seen, but the interest rates on credit cards, which is considered to be unsecured consumer loan, goes up to about 40 percent. So to me, that is unacceptable,” he mentioned.
“[M]aybe more will be inclined to use the credit cards” if the proposal is adopted, the Bangko Sentral chief added.
With studies from MAYVELIN U. CARABALLO