STRICTER GUIDELINES FOR CREDITS CARD FIRMS

Manila, May 2, 2003 -- The Banko Sentral ng Pilipinas (BSP) has proposed stricter guidelines to apply on credit card companies.

It suggested that card companies should consider an account a loss if it exceeded 180 days, thus a need to provide a 100-percent cover. For past due accounts, the BSP proposed 25-percent provisioning on past due accounts.

BSP deputy governor Alberto V. Reyes said: "This reclassification is in line with international standards. Also we are consolidating the lending rules and clarifying those applicable to credit cards."

The Credit Card Association of the Philippines (CCAP) is being consulted on the proposed rules. (Malaya)


Reported by: Sol Jose Vanzi

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