Local banks with loan exposures to a bankrupt Korean-owned shipbuilder will be working together to address the potential impact of a looming multimillion-dollar default, a Cabinet official said.

“It’s going to hurt but it’s certainly not going to end up hampering them,” said Finance Secretary Carlos Dominguez 3rd, who also chairs Land Bank of the Philippines (Landbank) — one of the five local banks affected by the insolvency of Subic-based Hanjin Heavy Industries and Construction Philippines.

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