SEC Releases Notice on the Cessation of Grace Period on Payment of Loans in the Philippines
The Securities and Exchange Commission (SEC), in a public notice dated June 01, 2020, has ceased the mandatory grace period to loans falling due within the period of the General Community Quarantine (GCQ) or Modified General Community Quarantine (MGCQ) since June 01, 2020. The notice follows through the Memorandum No. M-2020-0422 of Bangko Sentral ng Pilipinas (BSP) which states:
The mandatory grace period under the Bayanihan Act shall only apply if there are areas in the country under ECQ or MECQ. The application of the mandatory grace period shall cease once the ECQ and MECQ are lifted in the entire country. (Emphasis supplied)
The notice shall apply throughout the Philippines.
The mandatory grace period shall apply again in case an area in the Philippines is reverted back under ECQ or MECQ after being granted the GCQ or MGCQ status.