Gov. Arthur Yap reminds the Bohol Bankers Association (BBA) to extend a 60-day grace period in loan payments especially to tourist transport operators who are hibernating but who need to still pay their loans to the various banks.
He issued the reminder in a letter dated Sept. 16, 2020.
In the same letter, the governor informed Ramirez about the plans of the Provincial Government to help the impacted tourist transport sector. The sector is currently inactive and is not earning any revenue for several months as the tourism industry in Bohol remains dormant since no toutists have been visiting Bohol due to the continued travel ban.
The governor cited Republic Act No. 11494 or the Bayanihan 2 law or the Bayanihan to Recover As One Law. In that said law, the governor says, banks are mandated to give 2-months grace period on loan payment of any existing loans.
In a letter to William Ramirez (the president of the BBA), the governor reminded gentleman and the rest of the bankers here about the stipulations contained in the Bayanihan 2 law extending a one-time, 60-day grace period to payments to any existing loans.
In the same letter, the governor said, “Recently, the Bohol Confederation of Tourist Transport Service Providers (BCTTS) met with the undersigned (Yap) Monday, September 14, 2020, to air their concern that banks are set to execute the foreclosure of their assets in
the next 2 weeks.”
In the same letter, the governor said, “Presently, the Provincial Government is working to come up with financial solutions to their problems with the following possible options: The tourist transport service providers are being recommended to avail themselved of assistance from the Department of Trade and Industry – Small Business Corporation (SBC) under the P3-Cares Program. The individual transport service provider operator may avail of the assistance through the buy-out scheme of their vehicles under financing, provided they are qualified, with 2 years grace period for principal payment.”
The governor added, “While the (implementjng rules and regulations) IRR for this Program are still on the works, specific provisions will have to be requested to make the program
responsive to the needs of the tourism sector transport service
operators affected by the COVID-19 Pandemic.”
Furthermore the goveenor wrote,”The tourist transport service operators, particularly those organized in cooperatives, may also avail of the surety fund from the Bohol Coopreneurs Surety Fund (BCSF) to access funding from government financial institutions (GFI) to buy-out their existing vehicle loans from private banks, with lower interest rates, and offering 2 years grace period for principal payments.“
He added in his letter,”The tourist transport service cooperative, however, will have to comply with the requirements of BCSF to avail of said surety fund.”
He further stated in the letter that, ” The Provincial Government of Bohol is also preparing a special
program for the assistance of the tourism sector, including organized tourism transport operator, registered and accredited transport groups/cooperatives. The Provincial Government of Bohol, through tripartite loan agreement or other applicable schemes, may buy-out the existing vehicle loans of organized/ cooperative transport operators from private banks through borrowings from GFls offering two to three years grace period for principal payments. Interest will be paid by the Provincial Government for the first two years, and starting the third year, organized transport operators/ cooperatives will start to pay the principal and interest to the government financial institutions, assuming back the responsibility of the vehicle loan.
The letter further reads, “The organized transport operator cooperative will have to pay back the Provincial Government of the interest it paid for the first two years included in the payment of their obligation to the GFI.”
The governor revealed, “This proposed scheme will still have to be approved by the GFIs as well as government oversight agencies if feasible, and must be authorized by the Sangguniang Panlalawigan. The said scheme can also be applied for government subsidies under the Bayanihan 2 Law to lower further the interest payable of our tourist transport providers. With the above options and the corresponding time required for the approval of these solutions, we appeal that our banks in Bohol, through the Bohol Bankers Association will provide the much needed assistance and time consideration to one of the most COVID-19 affected industries in the province. The possibility of us finding a solution is very high since the Provincial Government of Bohol is exploring concrete solutions through its own financing sources and the recently signed Bayanihan 2 Law itself provides billions in loans and assistance to the Tourism Industry.”
The governor shared some ideas about the assistance being formulated by the Provincial Government to help the tourist transport operators during a virtual press conference for the Philippine Travel Exchange (PhiTEx).
He said he will also get the support of other provincial governors who are members of the League of Provinces of the Philippines in realizing the interventions to help the beleaguered tourist transport sector.