The Bankers Association of the Philippines (BAP) has expressed support to the implementing rules of Republic Act No. 11469 or the “Bayanihan to Heal As One Act” which, among others, mandates a nationwide 30-day moratorium on loan payments.
In a press statement on Wednesday night, the BAP said it’s in close coordination with the regulators to ensure the quick turnaround of the implementing rules and regulations (IRR) of section 4 (aa) of R.A. 11469.
“As the backbone of the Philippine financial system and economy, we are one with the national government to aid in the recovery and rehabilitation during this time of public health crisis,” the BAP said.
“We trust that the provisions under the IRR are meant to protect the collective interests of our stakeholders. The banking industry and individual banks respect the IRR and will follow the law and its implementing rules in order to achieve its objectives.”
Under the guidelines, all covered institutions must implement a 30-day grace period for all loans with principal and/or interest falling due within the enhanced community quarantine (ECQ) period “without incurring interest on interest, penalties, fees and other charges.” The initial 30-day grace period will be automatically extended if the government would extend the ECQ period.
The BAP also welcomed all the regulatory relief measures extended by the Bangko Sentral ng Pilipinas that would allow banks to support the needs and requirements of the national government, businesses and the banking public.
“In these extraordinary times, more than ever, the Philippine banking system continues to demonstrate a strong collaboration among stakeholders through issuance of guidelines in a clear and timely manner,” the BAP said.
“We remain resilient during this disruptive time for our country and economy. We are committed in doing all necessary measures to help win the fight against COVID-19.”