State-run Development Bank of the Philippines (DBP) granted payment moratorium of up to six months to 386 borrowers under an existing loan program that provides financing support for the rehabilitation efforts of both public and private institutions adversely affected by the COVID-19 pandemic, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the payment deferment totaled
P11.12-billion, which was granted under the Bank’s Rehabilitation Support Program on Severe Events (DBP RESPONSE) and benefitted companies from key client groups such as construction, manufacturing, health, education, transport and storage among others.
“DBP is committed to provide the necessary support to our clients as they gradually capitalize on the easing quarantine restrictions, which have taken a toll on their businesses,” Herbosa said.
DBP is the eighth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics, micro, small and medium enterprises, social services and community development, and the environment.
The payment moratorium is DBP’s response to government’s call for financial institutions to grant additional temporary credit relief to borrowers whose businesses were affected by the COVID-19 heath threat, which is among the provisions in Republic Act No. 11469 or the Bayanihan to Heal As One Act.
Herbosa said DBP has also approved new loans amounting to
P400-million to two manufacturing companies and a local government unit (LGU) for their respective crisis response and recovery plans under DBP RESPONSE.
He urged local businesses, LGUs, and other government entities to seize the opportunity during the crisis to improve their existing systems and strengthen business continuity programs to mitigate the impact of future pandemics or similar crisis situations.
“We at DBP are ready to provide the needed tools and assistance to our partners in the business community and fellow government institutions as they reassess the cogency of their existing systems amidst a vastly-changed socio-economic environment spawned by this pandemic,” Herbosa said.