Section 2Sec./Art. 2

Declaration of Policy.- The Coronavirus Disease 2019 (COVID-19) pandemic has greatly affected nations worldwide, including the Philippines, and the measures adopted by the government to contain the outbreak have unavoidably caused serious economic setbacks and tremendous financial pressure on markets and industries. Because of the unpredictability of the course and outcome of the health crisis, it is necessary to lay down the appropriate policies not only to marshal available resources towards the most affected and vulnerable sectors but more importantly, to strengthen the financial sector so that economic recovery can be achieved faster, and with more lasting positive effects.

The State recognizes the role of the banks and other financial institutions as mobilizers of savings and investments and in providing the needed financial system liquidity to keep the economic afloat. Thus, it is essential that banks and other financial institutions are able to maintain their financial health in order to cushion the adverse economic impact of the COVID-19 pandemic. It is hereby declared the policy of the State:

(a) to develop and maintain a sound financial sector for the country;

(b) to address the non-performing assets problems of the financial sector;

(c) to encourage private sector investments in non-performing assets;

(d) to eliminate existing barriers in the acquisition of non-performing assets:

(e) to help in the rehabilitation of distressed businesses with the end in view of their becoming economic value-added contributors; and

(f) to improve the liquidity of the financial system which can be harnessed to propel economic growth and maintain financial stability.