Deputy Majority Leader and Pampanga Rep. Juan Miguel Arroyo yesterday called on banks and other lending institutions not to wait for a directive coming from President Rodrigo Duterte and instead voluntarily extend moratoriums to their clients for loan payments given the imposed enhanced community quarantine (ECQ) during the coronavirus pandemic.
Citing provisions in Republic Act (RA) 11469, otherwise known as the Bayanihan to Heal as One Act, Arroyo made the appeal amid the rising concerns of borrowers for being penalized for failing to meet the due dates for their monthly amortizations from loans they have availed.
“Even as the Bayanihan Act gives authority to the President to give directives to banks and other lending and financial institution to extend a temporary relief for their borrowers, these banks, out of compassion, can voluntarily do such on their own,” Arroyo said.
While a number of these institutions have already extended moratorium for loan payments, some have yet to advise their clients regarding a temporary freeze on loan payments.
To recall, Duterte last week signed into law RA 11469, which provides the President the power to direct all banks, quasi-banks, financing companies, lending companies and other financing institutions, public and private” in areas where there is an ECQ to give a grace period for loan payments of at least 30 days.
Under the Bayanihan Act, clients or members who will defer loan payment during the period should not incur any interests, penalties, fees and other charges. In cases of persons with multiple loans, they shall likewise be given the minimum 30-day grace period for every loan.