P500 billion loans at risk of default
by Lawrence Agcaoili
MANILA, Philippines – Billions of pesos worth of loans are at risk of ending up in default due to the devastation wrought by tropical storm “Ondoy” and typhoon “Pepeng.”
Bangko Sentral ng Pilipinas officer-in-charge Nestor Espenilla Jr. said the estimated retail loan portfolio affected in calamity areas is about P500 billion or 24 percent of the total banking industry’s loan portfolio of P2.3 trillion.
“The initial estimate of the overall loan exposure in areas affected by Ondoy and Pepeng is more than P500 billion. Of course not all of that will be affected but even if you look at percentages, maybe one percent is already P5 billion,” Espenilla told reporters on the sidelines of the 52nd Charter Anniversary forum of the Rural Bankers Association of the Philippines.
Ondoy (international code name Ketsana) killed more than 300 people as floods swamped 80 percent of Metro Manila on Sept. 26, while Pepeng has so far killed more than 100 people and is currently devastating farming areas in northern Luzon, particularly Pangasinan.