Expansion of Mandatory Grace Period for Loans during Extended Enhanced Community Quarantine

April 16, 2020CORPORATE GOVERNANCE AND FINANCE DEPARTMENTTO:Financing Companies (FCs), Lending Companies (LCs) and Microfinance NGOs (MF-NGOs)   SUBJECT:Expansion of Mandatory Grace Period for Loans during Extended Enhanced Community QuarantineNOTICEPlease be advised that the initial thirty (30)-day grace period for the payment of loans, as provided under Section 4 (aa) of Republic Act No. 11469, or the Bayanihan to Heal as One Act, i shall apply to all loans with principal and/or interest falling due within the extended Enhanced Community Quarantine (ECQ) period, ii from 17 March 2020 to 30 April 2020. This is in view of the extension of the ECQ over the entire Luzon until 30 April 2020, and Section 3.01 of the Implementing Rules and Regulations (IRR) of Section 4 (aa) of the Bayanihan to Heal as One Act, which reads:"Section 3.01.wxwxMandatory Grace Period. — All Covered Institutions shall implement a 30-day grace period for all loans with principal and/or interest falling due within the ECQ Period without incurring interest on interest, penalties, fees and other charges. The initial 30-day grace period shall automatically...