MANILA - All financial institutions regulated by the Bangko Sentral ng Pilipinas are "immediately required" to comply with the 60-day grace period on loans under the Bayanihan 2 law which took effect on Sept. 15, Gov. Benjamin Diokno said Friday.
The Bayanihan to Recover As One or Bayanihan 2 law required all covered institutions to "implement a mandatory one-time 60-day grace period to all existing, current and outstanding loans falling due, or any part thereof, on or before 31 Dec. 2020, Diokno said in a memorandum.
"The mandatory one-time 60-day grace period shall apply to each loan of individuals and entities with multiple loans," the memorandum reads.
Financial institutions are told not to charge interest on interest, penalties, fees or other charges during the mandatory one-time 60-day grace period, it said.
Accrued interest for the moratorium may be paid by the borrower on a staggered basis until Dec. 31, 2020.
The BSP said parties may agree on a grace period longer than 60 days and payment of accrued interest on a staggered basis beyond Dec. 31.
Financial adviser Salve Duplito, however, said an earlier grace period is just a "postponement" and not a condonation of loans, which means borrowers still need a plan to pay for it.
The government earlier implemented a 30-day reprieve on some monthly payments to help them cope with the COVID-19 pandemic.