To minimize the financial burden of people due to the state-imposed enhanced community quarantine, President Rodrigo R. Duterte is now authorized to direct banks and government-run social funds to give a moratorium for loan payments under Republic Act (RA) No. 11469 or the Bayanihan to Heal Law.
The newly signed law temporarily provided the President the power to direct all banks, quasi-banks, financing companies, lending companies and other financing institutions, public and private” in areas where there is a enhanced community quarantine (ECQ), to give a grace period for loan payments.
The policy will also apply to Government Service Insurance System (GSIS), Social Security System (SSS), and the Pag-ibig Fund.
The grace period should be at least 30 days and cover loans that are due within the period of the ECQ.
Clients or members who will defer loan payment during the period should not incur any interests, penalties, fees and other charges.
Person with multiple loans shall likewise be given the minimum 30-day grace period for every loan.
Aside from loan payments, Duterte was also given the power to impose a minimum a grace period for resident rent payment that are due during the ECQ.
RA 11469 was signed by Duterte on Wednesday and will take effect immediately after being published. It will be in effect only for three months upon its full implementation.
The law was passed by Congress amid the ongoing ECQ in Luzon, which led to the suspension of almost all business operation in the area. Because of the suspension many workers, have lost their means of earning income and now in need of government support.