The country is gradually relaxing quarantine measures, and most of companies are returning to the regular office work.
Since the start of the ECQ, M.B.A. Consulting Philippines was able to sustain its operations. In June, around 30% of employees work at the office, in compliance with the rules of limited presence and social distancing. The rest of workforce works remotely.
“Summing up the results of work under the ECQ, we can say that M.B.A. Consulting Philippines has passed this challenging time brilliantly and is ready to start working with a renewed vigour,” said John Mangalindan, the CEO of M.B.A. Consulting Philippines.
“All this time the company has provided support to the clients remotely, has kept its team. Now we are starting to recruit employees and conducting training. In addition, we are in negotiation process with several large representatives of the country’s financial sector: one of the top 20 international banks, and some leading financial organizations, to acquire NPL portfolios totaling more than 3 million euros. Cooperation with these clients indicates the degree of confidence in the company and our methods of work. Our major advantage is that we take a great care of our clients’ reputation and strive to maintain a balance of interests of all parties, helping clients to clear their balances, and debtors to improve financial situation.”
The current situation in the country is quite difficult for both debtors and financial institutions: during these few months of quarantine, the NPL level increased to 2.3% (versus 2.1% in 2019). According to the preliminary data of the Philippines Central Bank, the total amount of non-performing loans (NPL) increased to PHP 252.63 billion at the end of April (PHP 213.51 billion a year earlier).
In such conditions, on the one hand, the demand for debt collection services is growing, and on the other hand, the responsibility of financial market participants for the well-being of ordinary people increases. And while many companies are still extending the grace period to their customers, this is not always the best way to recover. Maintaining the balance of interests of all financial market participants and competent approach to dealing with debts and debtors is the only way out of the crisis.
Indebtedness is growing exponentially, and grace period reduces social tension partly, but does not solve the accumulated problems: financial companies still lack liquidity, and ordinary citizens are still unable to find funds to secure loans and pay off debts. This situation may continue for quite a long period of time while the economy is recovering.
Therefore, cooperation with trustworthy debt collection agencies that work in accordance with international standards and norms is a natural and necessary process to speed up the business environment recovery and support the population.
“We see that demand for our services is increasing, and we are striving to support banks, financial institutions and ordinary people in Philippines, especially during this tough time. We are ready to invest more in NPL portfolios, helping financial companies’ to recover in the midst of a deep economic crisis; we are ready to support our debtors to make an individual recovery’s plan and find the best solutions to get out of difficult financial situation,” said Mr. Mangalindan.