BSP gives borrowers breathing room

6 months’ grace on loans, 1 year of farm deferment, and lower digital transfer fees amid the energy emergency.

Bangko Sentral ng Pilipinas (BSP) is giving borrowers more breathing room as it rolls out regulatory relief measures to help cushion the impact of market pressures tied to tensions in the Middle East and the State of National Energy Emergency.

Under Monetary Board Resolution No. 296 dated April 8, 2026, affected borrowers may be granted up to a 6-month grace period on loan payments, while farmers can access up to a 1-year deferment on agricultural loans, subject to bank assessment.

Some loans may also be temporarily excluded from past due and non-performing loan classifications for up to 1 year, giving borrowers space to recover without immediate penalties on paper.

BSP is also urging banks to reduce or suspend fees on digital transactions such as InstaPay and PESONet, easing the cost of everyday payments for consumers and businesses increasingly relying on online banking.

The relief pillars

The central bank stressed that relief should be targeted only to borrowers whose repayment capacity has been materially affected, with safeguards to keep lending practices stable and disciplined.

Households, MSMEs, and farmers already under pressure from higher costs and uncertainty get short-term breathing room from the move, though it remains a stopgap rather than a permanent fix, with its impact still dependent on how long external disruptions last.

As of February, bank bad loans stood at ₱536.68 billion, or 3.33%, while past due loans reached ₱715.66 billion, reflecting lingering stress in the system even before the latest shock.