Metro Manila (CNN Philippines, April 13) — The Pasay City government has asked pawnshops to reduce the interest they charge on loans to help cash-strapped Filipinos cope with the COVID-19 pandemic.
The Pasay City Council passed a resolution last week urging all pawnshops operating in the area to slash the amounts they charge on pawned items that will be redeemed by residents, calling it a “humanitarian” act amid the health crisis.
The enhanced community quarantine implemented since March 17 meant to contain the virus has kept thousands of Filipinos away from their jobs, as only health workers and those in supermarkets, banks, food preparation facilities and similar critical industries have been allowed to operate. The Luzon-wide lockdown has been extended until April 30.
“Many families, especially those who belong to the working and informal sectors, are deprived of the opportunity to earn to support their basic needs and to pay for their bills such as rent, utilities and the like, which forced them to pawn their personal properties,” the measure read, saying that some families continue to struggle despite some relief provided by both the national and local governments.
The council approved the resolution on April 8, and has been signed by eight councilors and by Vice Mayor Noel Del Rosario who presided over the Wednesday session.
The councilors also cited a provision in the Bayanihan to Heal as One Act which gave President Rodrigo Duterte the special authority to “ensure the availability of credit” to productive sectors.
Pawnshops are more accessible compared to banks as they have a wider branch network and demand fewer requirements for transactions. Struggling Filipinos can secure instant cash by leaving an item of value such as jewelry or gadgets with a pawnshop, which they can redeem upon returning the money they borrowed plus interest within an agreed-upon period.
There are 71 confirmed COVID-19 cases in Pasay City with nine deaths as of Sunday evening. Twelve people have recovered, but more than 300 residents are still being monitored for the disease, according to the Pasay City Public Information Office.
