Airlines, banks, malls begin to adapt to May quarantine rules
MANILA, Philippines — Malls, banks and airlines on Friday moved to adjust their operations to fit another extension of the enhanced community quarantine (ECQ) in Metro Manila, and a more relaxed lockdown in other areas.
Airlines appear to be in status-quo, with flag-carrier Philippine Airlines and budget carrier Cebu Pacific Air keeping cargo and passenger flight cancellations until May 15, when the second extension of the lockdown in Metro Manila would come to a close.
In an advisory, PAL also said “there would be a gradual and calibrated resumption of operations” come May 16 when the ECQ in the National Capital Region (NCR) is expected to be lifted. Flights to be operated will be announced soon.
PAL and Cebu Pacific opted to keep all their planes grounded even though they can fly cargoes in 59 cities and provinces where ECQ would be relaxed to pave the way for a general community quarantine (GCQ) by May 1.
Apart from opening of airports and seaports for cargoes, areas under GCQ are also allowed to operate 50% to 100% of some non-essential industries like electronics, logistics and exports, provided social distancing measures are followed.
Malls
Among firms that will benefit from GCQ are malls, which would be permitted to operate provided only non-leisure stores will be opened. This includes restaurants, which can only accommodate take-outs and deliveries. At least one mall operator, Megaworld Corp., welcomed the move for their Cebu and Iloilo branches.
“All our malls are under ECQ, which means they will remain closed…, while those in Iloilo and Mactan, Cebu, which will possibly fall under GCQ by May 1, will follow IATF (interagency task force) rules,” said Graham Coates, head of Megaworld Lifestyle Malls, in a message. The message was relayed by Harold Geronimo, Megaworld’s external affairs head.
Ayala Malls and SM Supermalls have not responded to queries as of this posting.
Lenders
Banks, meanwhile, have always been exempted from prohibitions, although some lenders have earlier reduced employees to a skeletal workforce, prompting the closure of some branches. That said, with new parameters on ECQ and GCQ, credit borrowers may still opt to delay loan payments until May 15.
While come May 1 only select areas would be under strict lockdown, central bank Deputy Governor Chuchi Fonacier said the reprieve on loan payment deferral, which had been extended since March 24, would still apply nationwide.
“It doesn’t matter where ECQ is implemented. ECQ period is intended as reference to determine due dates that will qualify for application of mandatory grace period,” Fonacier said in a text message. Finance Secretary Carlos Dominguez III agreed.
Both the Bangko Sentral ng Pilipinas (BSP) and industry representatives remained confident banks can handle a fresh delay in loan payments, a crucial source of liquidity. BSP has conducted stress tests to assess banks' strength, and while results are not yet out, BSP Governor Benjamin Diokno is confident lenders have remained healthy.
“BSP has adopted a more accommodative monetary policy to soften the blow of the pandemic on the economy. In fact, we have adopted many unprecedented measures designed to shore up liquidity at this critical time,” Diokno said in a text message.
Results of a BSP survey released Friday also showed that in the first quarter banks have maintained overall credit standards for loans to both households and enterprises, including micro- small and medium enterprises (MSMEs). A stable demand for credit is also seen following the BSP’s back-to-back rate cuts meant to support the country’s virus-battered economy.
“Thrift banks help their MSMEs and individual clients by working closely with them in restructuring their loans that will match their expected cash flows, aside from providing grace period during ECQ,” said Suzanne Felix, executive director of Chamber of Thrift Banks.
“Thrift banks are well capitalized…and provisions for loan losses and liquidity…should help overcome/mitigate the challenges posed by a difficult economic environment moving forward,” she said in a text message.
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