Banks told to waive charges during ECQ period

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has directed banks to waive interest, fees and charges during the 30-day grace period to future payments of the borrowers as part of the government’s efforts to ease the burden of Filipinos amid the health crisis.

BSP Governor Benjamin Diokno said the implementing rules and regulations of Republic Act 11469 or the Bayanihan to Heal as One Act mandates all covered institutions to implement a 30-day grace period on all loans with principal and interest falling due within the enhanced community quarantine period without incurring interest, penalties, fees, and other charges.

Diokno issued Memorandum Order 2020 – 017 stating that the 30-day grace period applies to individual loans and entities with multiple loans.

The BSP chief added banks are also prohibited from requiring their clients to waive the application of the provisions of the new law.

“No waiver previously executed by borrowers covering payments falling due during the enhanced community quarantine shall be valid,” Diokno said in the memo.

According to the regulator, the borrower must pay the accrued interest for the 30-day grace period on staggered basis over the remaining life of the loan.

However, BSP added borrowers could also pay the accrued interest in full on the new due date.

Diokno reiterated the initial 30-day grace period would automatically be extended if Malacañang decides to extend the month-long enhanced community quarantine period in Luzon.