Extension of the Mandatory Grace Period for Loans during the Extended Enhanced Community Quarantine Period

April 29, 2020CORPORATE GOVERNANCE AND FINANCE DEPARTMENT TO  :Financing Companies (FCs),Lending Companies (LCs) and Microfinance NGOs (MF-NGOs)      SUBJECT :Extension of the Mandatory Grace Period for Loans during the Extended Enhanced Community Quarantine PeriodNOTICEPlease be advised that, in view of the further extension of the Enhanced Community Quarantine (ECQ) Period until 15 May 2020, 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, 1 shall apply to all loans with principal and/or interest falling due within the extended ECQ Period, from 17 March 2020 to 15 May 2020.This is pursuant to 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. Mandatory 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...