BSP clarifies mandatory grace period under the amended IATF Guidelines

The implementation of a 30-day grace period for the payment of loans provided under Section 8.2 General Provisions of the Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines refers to the mandatory grace period under Republic Act No. 11469 or the “Bayanihan to Heal as One Act” that had been implemented by Bangko Sentral ng Pilipinas (BSP) supervised financial institutions (BSFIs) upon effectivity of the said law in 2020.

The 30- day grace period under the said law ceased to apply effective 01 June 2020.  The Omnibus Guidelines (with Amendments as of March 28, 2021) issued by the Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases does not operate to extend the 30-day grace period provided for under Republic Act No. 11469.

The BSP strongly encourages BSFIs to continue to provide relief measures to its clients by renewing, restructuring, or extending the terms of the loans, among others, based on their continuing assessment of their cash flows.

The BSP has granted prudential relief measures to BSFIs to enable them to continue to provide financial services and support households and business amid the crisis.

The BSP will continue to closely monitor the impact of the pandemic on the financial industry to promptly address any emerging risk and to support a sustainable economic recovery.