Last week in this column I presented a discussion on the allocation of the P165.5 billion Bayanihan 2 funds. This week I would like to briefly touch on the other provisions of the Bayanihan 2 law (Bayanihan to Recover as One Act or Republic Act 11494), which was signed by President Duterte on September 11.
In the said law, all banks, financing companies, lending companies, real-estate developers, insurance companies, pre-need companies, and other private and public financial institutions are being directed to grant a one-time 60-day grace period for the payment of loans, including credit-card payments, falling due on or before December 31, 2020 without having to pay any interests, penalties and other charges.
The financial institutions and non-bank financial institutions agreeing to loan term extensions or restructuring will be entitled to regulatory relief to be determined by the Bangko Sentral ng Pilipinas. The Government Service Insurance System, Social Security System, and Home Development Mutual Fund (Pag-IBIG Fund) are also covered by the new law.
Bayanihan 2 also allows the extension of the maturity of existing, current and outstanding loans, including but not limited to salary, personal, housing, commercial, and motor vehicle loans, amortizations, financial lease payments, and credit- card payments. Interbank loans and bank borrowings are, however, not covered in the provision.
Many families will be happy to know that, under the new law, there is also a 30-day reprieve for the payment of water, electric, telecommunication and other utility bills in areas covered by the enhanced community quarantine and the modified enhanced community quarantine—without additional charges. Unpaid utility bills after the grace period may be settled on an installment basis for a period of not less than three months. Meralco recently announced that there will be no service disconnections until the end of October.
Home and commercial renters will likewise be relieved to know that rent dues covered within the period of the community quarantine will also be given a 30-day grace period, without incurring interests, penalties, and other charges. The payments will be amortized in equal monthly payments until the end of this year. The law also prohibits the owners to impose any rent increase during the same period.
It is worth noting that the law also has an anti-discrimination provision, which protects individuals who have been declared, confirmed, suspected, probable, exposed, or recovered from Covid-19, including returning overseas Filipino workers, health workers, frontliners, other service workers, and indigents. Punishment for people who will violate the law is six-month imprisonment and a fine of P100,000.
It would be easy to overlook—but I hope that we do not—that the new law also includes a provision promoting the use of bicycles and the development of bike lanes. Additionally, the law offers an added form of direct assistance to farmers, fisherfolk and agri cooperatives by allowing national and local government agencies to directly purchase agricultural and fishery products from them.
9 comments
Are motorcycle lending company like Wheeltek, Yamaha motors etc etc not included in Bayanihan Act 2?
When i asked Wheeltek if they will give a 60days grace period for my motorcycle installment, they said they are not included in the said Bayaniha law 2
Where can we find the part covering rent payments and escalation?
We have a subdivison developer who is about to issue a Notice for turnover and we need to have a housing loan approved within 10days from issuance. Otherwise they will charge 4% monthly. This is stated on the Sales Agreement. However, the borrower is currently having difficulties with providing conasularised SPA for the loan as Canada is still in lockdown.
Is this somehow included in this Sect 4 uu?
Are loan appliaances included in bayanihan act2
I would like to Ask po if there will be another Bayanihan Act 3 because its very helpful to us to extend our safety and the support of the Govt pls let us know po thanks so much
Are cooperatives covered? The law does not mention coops.
Cooperatives are included..im working a coop
Where can i file complaint regarding to those pawnshops who are not implementing BARO ACT2, with inclusion of penalties per day. I would like to let the government that this BARO2 is disregarded by the businessman.
We issued 24 cheque for our car loan to cover the agreement to pay it in 2 years. When the bayanihan act was signed the bank did not In cash the 2 cheques and put on hold, the cheque is still with them. Now they are asking us to pay the penalty for not paying. Our loan should have ended last august 2020. I just learned about this penalty when we receive a text from the bank last February 2021 of which we immediately made an inquiry on the nearest branch of the bank with the advice to email them which I did immediately. Now the penalty added another 15k. Is this right? What should we do?