Cessation of the Provision of the Mandatory Grace Period during the General Community Quarantine (GCQ) and Modified General Community Quarantine (MGCQ) Period

June 1, 2020CORPORATE GOVERNANCE AND FINANCE DEPARTMENTTO:Financing Companies (FCs), Lending Companies (LCs) and Microfinance NGOs (MF-NGOs)   SUBJECT:Cessation of the Provision of the Mandatory Grace Period during the General Community Quarantine (GCQ) and Modified General Community Quarantine (MGCQ) Period NOTICEPlease be advised that the mandatory grace period shall no longer be applied to loans falling due during the General Community Quarantine (GCQ) or Modified General Community Quarantine (MGCQ) throughout the Philippines beginning 01 June 2020. 1 This Notice is consistent with the Bangko Sentral ng Pilipinas (BSP) Memorandum No. M-2020-042, 2 which provides: xxx xxx xxxThe mandatory grace period under the Bayanihan Act shall only apply if there are still areas in the country under ECQ or MECQ. The application of the mandatory grace period shall cease once the ECQ and MECQ are lifted in the entire country. (Emphasis supplied)Conversely, once an area in the Philippines is reverted to either ECQ or MECQ, the mandatory grace period shall resume application.For compliance. Footnotes1. Per IATF Resolution No. 41, Series of 2020, 29 May 2020.2. 18 May 2020.