MANILA, Philippines — The Senate on Tuesday approved on third and final reading the proposed Financial Institutions Strategic Transfer (FIST) Act.
Voting 18-0, the Senate approved Senate Bill No. 1849 which seeks to assist financial institutions reeling from the economic impact due to the coronavirus pandemic by helping them sell off their non-performing assets (NPAs).
“This is important for our economy and for the businesses and for our banks to maintain a healthy financial situation in our country,” said Senator Grace Poe, chair of the Senate committee on banks, financial institutions and currencies and sponsor of the bill.
The measure intends to help banks manage bad loans, deal with the surge in NPAs, and rehabilitate struggling businesses.
It seeks to encourage banks and financial institutions to sell their NPAs to FIST corporations that will specialize in the resolution of distressed assets.
The measure first reached the Senate floor last September 28. The chamber approved it on second reading on Tuesday after some amendments and was able to pass it on third reading immediately after since it was a certified measure by President Rodrigo Duterte.