Poe calls out exec dep’t over ‘lack of cooperation’ in FIST bill hearing
MANILA, Philippines — Senator Grace Poe called out the executive department over its supposed lack of cooperation on its own priority measure, which seeks to allow banks to offload their soured loans and free up more funds to fuel the economy.
The Senate banks, financial institutions and currencies committee tackled the proposed Financial Institutions Strategic Transfer (FIST) Act in a hearing on Wednesday.
This measure seeks to encourage financial institutions to sell their nonperforming assets to asset management companies to be created as so-called financial institutions strategic transfer corporations that specialize in the resolution of distressed assets by providing fiscal incentives.
These include tax exemptions and reduced registration and transfer fees on certain transactions.
But at the hearing, the Bureau of Internal Revenue (BIR) and the Bureau of Treasury (BTr), both under the Department of Finance (DOF) took opposite sides on the issue.
The BTr expressed full support for FIST and the BIR expressed opposition to it, particularly provisions on tax exemptions.
Poe also took to task several agencies over the absence of its ranking officials during the hearing.
“I’d like to note also that this is a priority measure, and yet it’s disappointing to see that the heads of agencies didn’t really attend. They’re the ones saying that the economy needs it now,” she said.
“So, how will we know for sure that the economy needs it now if we don’t even have a commitment, an actual presence from those heads explaining to us in detail what their commitments are also and the safeguards they’re willing to accept,” she added.
According to the BTr, only P3 billion to P13 billion in revenues will be waived as part of the incentives under the FIST.
While the threat to the banking sector is not immediate, Poe said it is best to have the measures in place sooner rather than later for the big corporations and micro, small and medium enterprises to recover and for people to get their livelihoods back.
“This crash precipitated urgent measures from the government,” she said.
“The committee would like to stop playing catch-up with the pandemic and prepare the policy for the worse,’ the senator added. [ac]
