MANILA, Philippines — The Securities and Exchange Commission (SEC), the corporate regulator, is providing relief anew to borrowers.
In a notice dated June 11, the SEC urged financing companies and microfinance non-government organizations (NGOs) to provide relief to their borrowers as the economy gradually reopens.
Measures financing entities can implement include debt relief measures such as lowering of interest rates, waiver or reduction of penalties, charges and other fees, payment holiday, debt consolidation, extension of loan terms, and provision of flexible payment schedules, the SEC said.
The SEC also reminded lenders that they may implement their own debt relief programs.
This is in addition to the mandatory grace period required under Section 4(aa) of Republic Act 11469, or the Bayanihan to Heal as One Act, and its implementing rules and regulations (IRR).
According to Section 4(aa) of the law, the government can implement a 30-day grace period for the payment of all loans.
Under the IRR issued in April, all lenders, including those under the supervision of the SEC, shall apply an initial 30-day grace period to all loans with principal and/or interest falling due within the enhanced community quarantine (ECQ) period.
“The IRR provided the automatic extension of the grace period should the President extend ECQ period. Accordingly, all financing companies, lending companies and microfinance NGOs were required to apply the mandatory grace period to all loans with principal and/or interest falling due between March 17 and May 31,” the SEC said.
The SEC earlier reminded financing and lending companies to strictly comply with the Bayanihan to Heal as One Act, its IRR and other applicable laws, rules and regulations, warning that any violation or non-compliance shall be dealt with to the full extent of the law.
Aside from providing grace period, all covered institutions were prohibited from imposing interest on interest, fees and other charges to future payments or amortizations. Borrowers were, likewise, given the option to pay the interest accrued during the grace period on a staggered basis over the remaining life of the loan, the SEC also said.
At the same time, the regulator said that aside from the debt measures provided by law, lenders may also implement their own schemes that could provide relief to borrowers during this difficult time when the economy is still reopening