Specifically, the BSP reduced the reserve requirement rate and provided for alternative reserve compliance for lending to Micro- and Small and Medium Enterprises or MSMEs. We treated loans to MSMEs as compliance to the reserve requirement, increased the single borrower’s limit, and raised the ceiling for real-estate loans. We also allowed a grace period for loan settlement and restructuring of rediscounted loans.
Such moves provided relief to banks and their borrowers. IMF Chief Economist Gita Gopinath, at the 3rd APEC Structural Reform Ministerial Meeting last June 16, 2021, in fact commended the Philippines as among the ASEAN-6 economies which effectively provided liquidity support to firms, including through loan moratoria and government guarantees.