Mandatory Grace Period for Loans no Longer Applies During GCQ
SEC said the mandatory grace period under the Bayanihan Act shall no longer be applied to loans falling due during the General Community Quarantine (GCQ) or Modified General Community Quarantine (MGCQ) throughout the Philippines starting from June 1, 2020.
June 2, 2020 – The Philippine Securities and Exchange Commission (SEC) sent a notice advising financing companies, lending companies, and microfinance NGOs on the cessation of the provision of the mandatory grace period during the General Community Quarantine (GCQ) and Modified General Community Quarantine (MGCQ) period.
SEC said the mandatory grace period under the Bayanihan Act shall no longer be applied to loans falling due during the General Community Quarantine (GCQ) or Modified General Community Quarantine (MGCQ) throughout the Philippines starting from June 1, 2020.
The Commission said this notice is consistent with the Bangko Sentral ng Pilipinas’ (BSP) Memorandum No. M-2020-042, which stated that the mandatory grace period under the Bayanihan Act shall only apply if there are still areas in the country under ECQ or MECQ. Furthermore, it stated that the application of the mandatory grace period shall cease once the ECQ and MECQ are lifted in the entire country.
Finally, the mandatory grace period shall resume application once an area in the Philippines is reverted to either ECQ or MECQ.
Read the SEC Notice here.
This article is published on BitPinas: [SEC] Mandatory Grace Period for Loans no Longer Applies During GCQ
