Reforms to ensure the public health economy emerges stronger from the pandemic

A series of reforms the government is currently preparing, including proposed laws that will help companies deal with bad debts, will help ensure the Philippines emerges from the pandemic on a firmer economic footing.

This was said by the head of Bangko Sentral ng Pilipinas (BSP) who stressed that legislators were “making an enormous effort to help the economy and the Filipino people survive” the coronavirus pandemic and for the country to emerge “better, stronger, more inclusive, technologically prepared and more competitive than before. ” Speaking by videoconference with members of the Philippine Banking Marketing Association, Governor Benjamin Diokno said the central bank was pushing for legislation to speed up the recovery and improve the structural structure of the economy.

These laws include the Strategic Transfer of Financial Institutions or FIST bill, which will help banks get rid of bad assets; the unified initiatives of government financial institutions for companies in difficulty for economic recovery or the GUIDE bill, which will provide assistance to companies in difficulty that are critical to economic recovery; amendments to the Agri-Agra law to streamline the way banks can support agricultural development; amendments to bank secrecy laws to aid efforts against money laundering and tax evasion, and to promote integrity in government, and amendments to the Credit Information System Act to facilitate access to credit for micro , small and medium businesses.

At the same time, the central bank chief said the regulator continued to refine monetary policy and banking regulations.

In relation to price stability, last month the BSP began issuing its own securities as allowed by its recently amended statute, a policy that would help it better manage liquidity in the local financial system.

“In terms of financial stability, we are committed to a dynamic regulatory environment that reflects an ever-changing landscape for our supervised entities,” Diokno said.

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