Financial institutions ordered to implement 30-day grace period; New IATF-approved guidelines bared

Published May 7, 2020, 12:00 AM

by manilabulletin_admin

By Argyll Cyrus Geducos

All financial institutions are directed to implement a minimum of a 30-day grace period to help cushion the impact of the COVID-19 lockdown on the people.

Based on Resolution No. 33 of the Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases the order was made to all banks, financial institutions, including the Government Service Insurance System (GSIS), Social Security System (SSS), and the Pag-IBIG Fund.

These institutions were instructed to implement a minimum 30-day grace period from the due date or until such time that the community quarantine is lifted, whichever is longer, for the payment of all loans, falling due within the period of ECQ or GCQ without incurring interests, penalties, fees, or other charges.

There will also be a similar grace period of 30 days for residential and commercial rents.

Earlier, the IATF said the GSIS will grant a three-month moratorium on the payment of loans of its members and pensioners because of the ECQ.

The body said a 30-day grace period on residential rents provided under the Bayanihan to Heal as One Act was extended to commercial rents falling due upon micro, small and medium enterprises (MSMEs) without incurring interests, penalties, fees, and other charges.

Small business owners were also assured that they do not have to worry for now about paying off their loans, saying there is currently a moratorium on loans extended by the Department of Trade and Industry (DTI) through its different programs.

There is also a three-month moratorium on loans obtained from March 16, 2020 to June 15, 2020 for government-owned and -controlled corporations under the Department of Human Settlements and Urban Development (DHSUD).

Stranded students

Based on the resolution, the Department of the Interior and Local Government (DILG) was ordered to assist the Department of Transportation (DOTr) in coordinating with local government units (LGUs) for the return of stranded students under the Hatid Estudyante Program.

Food security

The IATF has also adopted the recommendation of the National Economic and Development Authority (NEDA) to manage and address supply chain issues, particularly for medical supplies