By Closed Banks
The Monetary Board, in its Resolution No. 1366 dated 18 September 2003, approved the guidelines on the restructuring of loans assigned to the BSP by closed banks. The amount to be restructured shall be outstanding of the borrower’s PN plus accrued interest less initial cash payment of not less than ten percent (10%) of the restructured obligations. The restructured amount shall be amortized in monthly or quarterly installments for a period not exceeding seven (7) years.
Said guidelines were modified by MB under Resolution No. 165 dated 12 February 2004, to include cash settlement with full waiver of liquidated damages, covering the outstanding balance of the borrower’s PN plus the accrued interest based on the interest rate indicated in the borrower’s PN, executed by the closed bank in favor of the BSP, reckoned from the last interest payment recorded in the books of the closed bank up to the date of the cash settlement.
By Operating Banks
Said guidelines were further modified by the MB in its Resolution No. 1292 dated 16 November 2007 to include past due loans of borrowers assigned to the BSP by operating banks, subject to prior conformity of said operating banks.
Application for restructuring shall be filed with the Department of Loans and Credit by the end-user borrower. For inquiries, please contact the Accounts Management Group of DLC at Tel. Nos. 306-2878, 306-2760, 306-2350, 306-2412, 306-2231 and 306-2761.