The Bangko Sentral ng Pilipinas on Friday directed all banks and financial institutions under its supervision to provide a 60-day grace period on loans to ease borrowers' financial burdens during the pandemic.
Under Bayanihan 2, or the Bayanihan to Recover As One law, all BSP-supervised institutions are required to grant a one-time 60-day grace period on existing, current, and outstanding loans failing due, or any part thereof, on or before Dec. 31, BSP Gov. Benjamin Diokno said in a memorandum.
The moratorium will cover each loan of individuals and even entities with multiple loans. During this time, financial institutions are barred from charging interest on interest, penalties, fees, and other charges.
A reminder from financial adviser Salve Duplito: this is just a postponement of loans, which means borrowers still have to pay for it eventually.