The Bangko Sentral ng Pilipinas (BSP) is set to introduce measures aimed at promoting green and sustainable projects in the country.
As part of these initiatives, the BSP will provide additional perks to banks, including an extra 15 percent single borrower limit (SBL) and a zero percent reserve requirement ratio (RRR) for financing environmentally friendly initiatives.
These perks will be available until December 31, 2030, the BSP said.
BSP Governor Felipe M. Medalla said these measures aim to support the financing of green and sustainable projects, as well as activities that contribute to the government’s climate commitments and sustainable development goals.
To qualify for these incentives, banks will need to meet certain conditions and ensure compliance with environmental laws and regulations. They will also be required to implement prudential controls to protect creditors’ interests and may need to secure relevant insurance policies and assign proceeds arising from them to the lending bank.
The BSP has announced that effective January 1, 2031, the maximum limit for new loans, credit accommodations, guarantees, as well as restructured, renewed, and refinanced credit exposures, will be capped at the prescribed SBL of 25 percent.