Money

Financial firms told to comply with 60-day loan payment moratorium

The Bangko Sentral ng Pilipinas has directed all banks and other lending institutions to immediately comply with the 60-day grace period for loans falling due on or before December 31, 2020.

BSP Governor Benjamin Diokno said the mandatory one-time 60-day payment freeze as required under the Bayanihan 2 bill shall apply to each loan of individuals and entities with multiple loans.

Financial institutions are prohibited from charging or applying interest on interest, penalties, fees or other charges during the 60-day grace period to future payments/amortizations of the borrowers.

They are likewise prohibited from requiring their clients to waive the application of the provisions of the law.

Diokno said the accrued interest for the one-time 60-day grace period may be paid by the borrower on staggered basis until December 31.

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