Aquino calls on state lenders to suspend interest payments amid Super El Niño

MANILA — Senate trade and commerce panel chair Bam Aquino has called on state-owned lending agencies to suspend interest payments on loans to small business owners from January through March 2027, as the country braces for the anticipated Super El Niño.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration has forecast that the Super El Niño weather pattern will reach its peak during the first quarter of 2027. Such extreme weather events typically bring severe drought conditions to large portions of the Philippines, disrupting agricultural production and straining businesses across multiple sectors.

Aquino's proposal seeks to provide financial relief to small and medium enterprises during the period when the weather phenomenon is expected to have maximum impact. By deferring interest payments, government lending agencies could help business owners manage cash flow pressures during months when revenues are likely to decline due to El Niño-related disruptions.

The senator's push reflects growing concerns within the business community about the economic fallout from the forecasted Super El Niño. Government lending institutions, including the Development Bank of the Philippines and the Small Business Corporation, have not yet responded to the proposal.

El Niño episodes typically cause significant challenges for the Philippine economy, particularly affecting agriculture, hydroelectric power generation, and water supply in regions dependent on seasonal rainfall.