THE Securities and Exchange Commission (SEC) has urged financing and lending firms to extend relief measures to borrowers, warning that rising fuel prices driven by the war in the Middle East could weaken the ability of Filipinos to meet their loan obligations.
In an April 16 notice, the regulator called on industry players to adopt “calibrated and sustainable” assistance programs following the government’s declaration of a national energy emergency.
SEC Chairman Francis Lim said that as lenders play a crucial role in providing financial flexibility, particularly during periods of economic strain, they should help ease the burden on borrowers facing higher living costs.
The regulator recommended that companies offer restructuring or rescheduling arrangements, including extending loan tenors, adjusting payment schedules, or lowering installment amounts based on a borrower’s capacity to pay.
It also encouraged lenders to grant grace periods on loan payments and to consider waiving penalties and surcharges.
At the same time, the SEC stressed that any relief should be implemented in a manner that remains viable for lenders, noting that assistance must be proportionate to a firm’s financial capacity, asset size and exposure to consumer lending.
Larger institutions and those engaged in high-volume lending, including online platforms, are expected to take a more active role in extending support, while smaller firms may provide relief on a case-to-case basis.
The regulator also underscored the need for transparency, saying all relief arrangements should be properly documented and clearly explained to borrowers to ensure informed consent.
The advisory was issued as higher fuel prices continue to ripple through the economy, raising concerns over inflation and putting pressure on household budgets, particularly among borrowers reliant on short-term financing.
