Sen. Bam Aquino, chairperson of the Senate trade and commerce committee, has urged government lending agencies to defer interest on loans to small business owners from January to March 2027, when a Super El Niño is expected to still be affecting the country.
Aquino made the appeal on Tuesday, October 13, according to a report by the Philippine Daily Inquirer. He cited a forecast from the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) that the Super El Niño will peak in December 2026 and last through the first quarter of 2027.
The senator said the phenomenon is expected to raise the prices of commodities, electricity, petroleum products and other essential goods. He said this would affect the income and livelihood of small business owners, workers and ordinary Filipinos.
Aquino also asked the Government Service Insurance System (GSIS), the Social Security System (SSS) and the Pag-IBIG Fund to waive fee collection. He said the relief should cover not only small businesses but also ordinary workers and the middle class. He asked the Small Business Corporation to do the same for micro, small and medium enterprises.
He said the government should hold off charging interest on loans “until the situation returns to normal.” He added that a temporary stop to interest charges would give workers and middle-class families extra income for household needs while commodity prices remain high.
Pagasa declared on June 9, 2026 that El Niño conditions were present in the tropical Pacific, after the sea surface temperature anomaly reached the +0.5°C threshold in May. In its July seasonal outlook, the agency said the El Niño had a high chance of becoming very strong during the October to December 2026 season.
On October 11, in Singapore, President Ferdinand Marcos Jr. said the government would launch an information campaign on how households can collect, filter and treat rainwater. He also said he had directed officials to arrange rice imports to protect the food supply if dry conditions disrupt the next cropping season. He said agencies would submit detailed El Niño plans to him the following week.
Government lenders have extended El Niño-related loan assistance before. In June 2024, GSIS allocated more than ₱4.3 billion in emergency loans for members and pensioners in areas affected by El Niño. The loans carried 6 percent interest and a three-year payment period.
