BSP tells banks and regulated firms: Meet the 60-day grace period for loans under Bayanihan 2

MANILA – All financial institutions regulated by Bangko Sentral ng Pilipinas are “immediately obligated” to comply with the 60-day grace period for loans under the Bayanihan 2 law that came into effect on September 15, the governor said on Friday. Benjamin Diokno.

The Bayanihan to Recover As One or Bayanihan 2 Act required all covered institutions to “implement a one-time mandatory grace period of 60 days for all existing, current, and outstanding loans due, or any portion thereof, on December 31, 2020 or before “. Diokno said in a memo.

“The mandatory 60-day one-time grace period will apply to each individual and entity loan with multiple loans,” the memo reads.

Financial institutions are told not to charge interest on interest, penalties, fees or other charges during the mandatory single 60-day grace period, he said.

The borrower can pay the interest accrued by the moratorium in a staggered manner until December 31, 2020.

The BSP said that the parties can agree to a grace period of more than 60 days and the payment of accrued interest on a staggered basis after December 31.

However, financial advisor Salve Duplito said that a prior grace period is just a “deferment” and not a loan forgiveness, meaning that borrowers still need a plan to repay it.

The government previously implemented a 30-day suspension on some monthly payments to help them cope with the COVID-19 pandemic.