MANILA - All lending institutions are required to give a 30-day grace period for all loans with payment dues that fall within the month-long Luzon lockdown, according to implementing rules of a new law to address the COVID-19 pandemic.
It covers all banks, quasi-banks, non-stock savings and loan associations, credit card issuers and pawnshops, according to implementing rules and regulations signed by Finance Secretary Carlos Dominguez.
Also covered are financial institutions under Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Cooperative Development Authority, Government Service Insurance System, Social Security System and Pag-IBIG, based on the IRR.
"All covered institutions shall implement a 30-day grace period for all loans with principal and or interest falling due within the ECQ (Enhanced Community Quarantine) period without incurring interest on interest, penalties, fees and other charges," the IRR said.
Covered loans include, but are not limited to salary, personal, housing, auto loans, as well as credit card payments, the IRR said. No incurring interest, penalties, fees and other charges should be imposed, it said.
The entire island of Luzon was placed under the enhanced community quarantine to stop the spread of COVID-19, from March 17 to April 12. Loan payment extensions should be "automatically extended" if President Rodrigo Duterte extends the quarantine period, it said.
Waivers previously executed by borrowers covering the period will be deemed invalid, it said. However, borrowers who opt to pay their obligations during the period can do so, it said.