BAD LOANS ENTITY ASSURED
The Bureau of Internal Revenue (BIR) has assured senators of its full support for a measure that aims to allow banks to dispose of their bad loans and other non-performing assets (NPAs) through would-be asset management companies, which, in turn, will enable them to offer a steady flow of credit to businesses hit hard by the coronavirus-induced global economic downturn.
BIR Commissioner Caesar Dulay gave this assurance during a recent joint hearing of the Senate committees on banks, financial institutions and currencies and on ways and means.
Dulay told senators he had also sent a letter to Senator Grace Poe, who chairs the banks committee, formally manifesting the BIR’s support for the proposed Financial Institutions Strategic Transfer (FIST) bill, which is one of the measures backed by the Department of Finance (DOF) as part of the government’s economic recovery program.
“While we have stated also that the tax incentives may affect our revenues in terms of foregone revenues, on the balance, we believe that the objectives of the bill will far outweigh the effect on our revenue collections,” Dulay said during the recent Senate joint hearing on the proposed FIST bill.
The Senate ways and means committee is headed by Sen. Pia Cayetano.
In his letter to Poe, Dulay reiterated the BIR’s support for the FIST bill and offered the bureau’s assistance to the Senate by way of providing financial data relevant to the ongoing deliberations on the measure.
“Finally, we are one with the DOF, Bureau of the Treasury (BTr).
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