SEC urges lenders to adopt relief measures amid energy emergency

The Securities and Exchange Commission (SEC) is encouraging financing and lending companies to adopt relief measures for borrowers, in light of rising fuel prices caused by geopolitical developments in the Middle East that may adversely impact the repayment capacity of Filipinos. 

In a notice dated April 16, the Commission called on financing and lending companies to implement calibrated and sustainable reliefs for borrowers, in line with the declaration of a State of National Energy Emergency under Executive Order No. 110, Series of 2026.

“We recognize the importance of the financing and lending industry in extending credit to Filipinos in need. In times of economic disruption, their contribution in offering financial flexibility to the public is even more clear,” SEC Chairperson Francis Lim said.

“We urge the industry to help our fellow kababayans by providing financial relief to enable them to manage their finances better and navigate this difficult period,” he added. 

Relief measures

The SEC recommended financing and lending companies to implement loan structuring or rescheduling programs as priority relief measures.

Loan restructuring programs may include payment schedules modification, loan terms extension, adjustment of installment amounts based on the borrower’s capacity to pay, and other reasonable accommodations that facilitate continued repayment without undue financial strain. 

Financing and lending companies may also extend a grace period of at least one month on loan payments, depending on the borrower’s financial condition.

The grant of a grace period should be targeted, or based on the demonstrated financial distress by the borrower, and calibrated, considering the company’s financing capacity and liquidity position.

Financing and lending companies are likewise encouraged to waive or refrain from imposing penalties, surcharges, and similar charges, consistent with fair and reasonable lending practices, during the grace period.

Proportionate, capacity-based application 

Financing and lending companies are encouraged to adopt a proportional approach in implementing relief measures based on their own financial capacity, including their total assets. This ensures the continued stability of the lending sector while providing necessary breathing room for vulnerable borrowers. 

Entities with greater financial capacity, scale of operations, or exposure to high-volume consumer lending are expected to take a more proactive role in extending meaningful relief measures, including structured restructuring programs and, where appropriate, targeted grace periods. 

Other entities may extend relief measures on a case-to-case basis, taking into account their financial viability, liquidity position, and operational capacity.

Meanwhile, financing and lending companies operating online lending platforms or engaged in high-volume consumer lending are likewise expected to adopt a more proactive approach in providing relief, regardless of asset size.

​To uphold transparency, financing and lending companies are encouraged to ensure that all relief arrangements are properly documented in writing, clearly explained to borrowers, and supported by the borrower’s informed consent.