THE Bangko Sentral ng Pilipinas (BSP) has issued new guidelines to ensure that its supervised financial institutions, or BSFIs, take a more flexible and systematic approach to modifying the terms and conditions of loan agreements for borrowers who have been significantly impacted by the Covid-19 pandemic.

'The BSP is issuing this memorandum to provide guidance on the regulatory treatment of loans with terms and conditions that have been modified due to the impact of the pandemic, especially consumption loans, for purposes of measuring expected credit losses (ECL) and classifying the accounts as nonperforming,' said BSP Deputy Governor Chuchi Fonacier in a memorandum released on Friday.