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MANILA, Philippines – The head of Bangko Sentral ng Pilipinas (BSP) said on Thursday (October 8) that the regulator is committed to ensuring that consumers and businesses can take full advantage of temporary loan repayment relief under the latest law. of the government. stimulus package.
In line with this, the central bank recently issued a memorandum providing more detailed guidance for financial institutions supervised by the BSP on the implementation of the mandatory and non-extendable 60-day grace period for loan payments under the “ Bayanihan to Recover as One Act “.
According to BSP Governor Benjamin Diokno, “The 60-day loan repayment moratorium provides much-needed relief to consumers and businesses as they rebuild their way out of this crisis.” “The BSP supports bold measures aimed at leading the country towards an inclusive economic recovery,” he said.
Related to this, the central bank’s consumer assistance mechanism allows the public to easily contact the BSP for inquiries or complaints against financial institutions. The BSP is also ready to deploy its full range of monitoring tools and enforcement actions to ensure compliance with the law.
According to the stimulus law, the loan payment for the principal or interest, including amortizations, that are due between September 15 and December 31 of this year can be paid after 60 days, without generating interest on interest, penalties, fees or other charges.
Interest to be charged per payment period, which is based on the outstanding principal balance of the loan, will continue to accrue during the grace period and will be payable on the new due date following the 60-day grace period.
The application of the mandatory grace period of 60 days, in effect, moves the due dates of the payment of the entire loan, thus extending the due date of the loan.
Loans such as salary, real estate, motor vehicles, businesses and credit cards are covered by the mandatory grace period as long as they exist and are pending as of September 15 of this year, the effective date of the law.
However, loans that are considered past due as of September 15, 2020 are not eligible for the mandatory grace period.
Under the central bank memorandum, financial institutions are also prohibited from requiring clients to waive the application of the provisions of the Bayanihan Act 2, which aims to provide multiple stimulus packages to various sectors of the economy reeling from the COVID-19 pandemic.
The borrower can pay the accrued interest during this one-time grace period on a staggered basis until the end of this year.
Additionally, financial lending institutions and borrowers can agree to a grace period longer than the mandatory 60-day period, or staggered payment of accrued interest beyond the end of the year, he said.
Edited by TSB
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