BAYANIHAN TO RECOVER AS ONE ACT
IMPLEMENTING RULES AND REGULATIONS (IRR)
Republic Act No. 11494-Section 4 (uu): IMPLEMENTATION OF MANDATORY GRACE PERIOD TO
TO WHOM IS IT ADDRESSED TO?
- To all Bangko Sentral Supervised Financial Institutions (BSFIs) with lending operations and shall include banks, quasi-banks, financing companies, lending companies, real estate developers, non-stock savings and loan associations, trust departments/ corporations, insurance companies providing life insurance policies, and other financial institutions, public and private.
- This also includes the Government Service Insurance System (GSIS), the Social Security System (SSS) and Home Development Mutual Fund (Pag-Ibig Fund).
Note: The Bayanihan to Recover as One Act shall not apply to interbank loans and bank borrowings.
- There will be a one-time 60-day payment moratorium on PBB loans on current status (not past due) falling due on September 15 ‐ December 31, 2020. The accrued interest on the said period can be paid on a staggered basis.
- This mandatory grace period shall cover loans including but not limited to: salary, personal, housing, commercial and motor vehicle loans, amortizations, financial lease payments and premium payments and credit card payments. This also shall apply to multiple loans of individuals and entities.
MANDATORY GRACE PERIOD
- A non-extendable one-time sixty (60) grace period shall be implemented to all covered institutions for all existing, current and outstanding loans with principal and/or interest, including amortizations that are falling due on or before December 31, 2020.
- All covered institutions shall not incur interests on loan interests, penalties, fees and other charges during the mandatory one-time 60-day grace period to future payments, amortizations of the borrowers.
- Requiring the clients to waive the application of the mandatory one-time 60-day grace period shall be prohibited for all covered institutions.
These rules shall take effect on September 15, 2020 to December 31, 2020.
For inquiries, please call our Consumer Banking Group @ 8363-3333 loc. 1034.