Deferment of the Release of Remittance on Loans for the Payroll Month of April 2020

MEMORANDUM
OUF-2020-0113

FROM:       ANNALYN M. SEVILLA
                    Undersecretary

SUBJECT: DEFERMENT OF THE RELEASE OF REMITTANCE OF LOANS FOR THE  
                    PAYROLL MONTH OF APRIL 2020

DATE:        April 3, 2020

On March 24, 2020, President Rodrigo Duterte signed into law the "Bayanihan to Heal as One Act" granting him additional powers to address the emergency health crisis the country is now facing due to the coronavirus disease (COVID-19) threat.

Under Section 4(aa), the President is authorized to "Direct all banks, quasi-banks, financing companies, lending companies, and other financial institutions, public and private, including the Government Service Insurance System, Social Security System and Pag-ibig Fund, to implement a (30)-day grace period for the payment of all loans, including but not limited to salary, personal, housing, and motor vehicle loans, as well as credit card payments, falling due within the enhance community quarantine without incurring interests, penalties, fees, or other charges. Persons with multiple loans shall likewise be given the minimum (30)-day grace period for every loan."

Pursuant to this, the Department of Finance (DoF) has issued on April 2, 2020 the implementing rules and regulations (IRR) directing all lenders to grant a 30-day grace period or extension for the payment of all loans, falling due within the enhanced community quarantine (ECQ) period, without slapping interest on interest or any additional charges and fees on the borrowers.

To standardize and harmonize the legal interpretations and implications of the implementation of DOF's rules and regulations, this Office is closely coordinating with the DoF, Government Financial Institutions (PLIs) in the crafting of DepEd's internal guidelines.

Thus, pending the issuance of internal guidelines, all offices/units involved in the preparation and processing o loan remittance are hereby instructed to hold in abeyance the remittance of the loan amortizations for the month of April 2020, until further notice.

Rest assured that this Office is committed to issue the internal guidelines at the soonest possible time.

for strict compliance.

cc: Leonor Magtolis Briones

      Secretary