Banks were open to offer loans to MSMEs for 13th month pay, according to BAP.
The Bankers Association of the Philippines (BAP) said that banks were open to offer loans to micro, small, and medium enterprises (MSMEs) in order for them to be able to release the 13th month pay to the employees.
This, as Benjamin Castillo — the managing director of BAP — said that the Bankers Association of the Philippines was willing to work hand in hand with MSMEs in order to roll out the necessary facilities as it had been continuously doing.
In a report on GMA Network’s “24 Oras Weekend”, Castillo said that with an appropriate plan of MSMEs, the banks would listen and would be flexible.
The Bankers Association of the Philippines was established in 1949 and was the lead organization of universal and commercial banks in the country. It’s consisting of 45 members: 24 foreign bank branches and 21 local banks.
READ ALSO: DOLE Finally Breaks Silence & Speaks About 13th Month Issue
BAP’s statement came after the Department of Labor and Employment (DOLE) declared last week that employers can’t be exempted or defer from giving the 13th month pay benefit of their employees.
According to Labor Secretary Silvestre Bello, employers have to release the 13th month pay to their workers on or before 24th of December, but the only exception as provided by the implementing rules and regulations (IRR) was when the company was “in distress”.
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I’m sure banks would ask for collateral. Then, that’s not a relief.