COVID19 relief: DOF issues guidelines for loan payment moratorium

The Department of Finance (DOF) on Wednesday (April 1) released the guidelines for the 30-day loan payment moratorium under the Bayanihan to Heal as One Act.

The DOF, together with the Department of Budget and Management (DBM), is also tapping unused funds from GOCCs and national government agencies for COVID-19 response.

The implementing rules and regulations (IRR) for the Bayanihan law was signed by Finance Secretary Carlos G. Dominguez III.

It covered all public and private lenders.

The 30-day grace period covered all loans—including multiple loans of individuals and entities—with principal or interest falling due within the enhanced quarantine period from March 17 to April 12.

Dominguez said the measure’s implementation was nationwide.

Under the temporary loan relief provision, institutions cannot slap interest, fees and other charges on loans nor on amortization for individuals, households, MSMEs, corporate borrowers and others.

Documentary stamp tax payments on loan agreements were waived.

Interest payments may be made on staggered basis. It is up to borrowers whether to pay loans in full after the 30-day grace period.

Lenders were also prohibited from requiring clients to waive application for the loan payment moratorium program.

Borrowers who want to settle their dues during the quarantine period, however, are not prohibited from doing so.

If the government extended the enhanced quarantine, the loan payment moratorium period would automatically be adjusted.

Edited by TSB