Lawmakers, bankers agree on 60-day loan reprieve under Bayanihan 2: Angara

ABS-CBN News

Posted at Aug 20 2020 02:53 PM | Updated as of Aug 20 2020 08:36 PM

MANILA - A 60-day moratorium on loans is part of the Senate and House of Representatives bicameral committee-approved version of the Bayanihan to Recover As One bill, which is a step closer to becoming a law. 

An earlier House version of the Bayanihan 2 bill sought the approval of a 365-day moratorium on loans. 

Bangko Sentral ng Pilipinas Gov. Benjamin Diokno earlier said the proposed year-long moratorium could “cause unintended consequences that will severely affect the banking industry."

“Gusto nga ng BSP 30 to 45 days lang sabi kasi nila yung smaller banks might take a hit. In the end, um-okay naman ang Bankers Association, na-realize nila kahit di namin i-impose ‘yan, ‘yun din ang mangyayari,” Senate Finance Committee chairman Sonny Angara told reporters.

(The BSP wants 30 to 45 days only since the smaller banks might take a hit. In the end, the Bankers Association agreed when they realized that even if we don't impose it, that's what's going to happen)

The reprieve under the bill covers all loans including credit card, insurance premiums and other business loans, he said. 

The earlier Bayanihan to Heal as One Act also included provisions on loans and rental reprieve, after the COVID-19 pandemic disrupted businesses resulting in loss of jobs and income.

Angara said the law takes effect immediately after Bayanihan 2 is enacted into law.

The Bayanihan 2 Recover as One, the country’s second coronavirus response bill, sets aside P140 billion and a standby appropriation of P25 billion if funds are available, Angara said.

-- with a report from Katrina Domingo, ABS-CBN News