1. How will the implementation of Modified Enhanced Community Quarantine (MECQ) in selected parts of the country affect the application of the mandatory grace period for the payment of all loans provided under the “Bayanihan Act To Heal As One Act” (Bayanihan Act)?
A: The MECQ shall have the same effect as the Enhanced Community Quarantine (ECQ) with respect to the application of the mandatory grace period for the payment of all loans falling due within the period of MECQ. Hence, the mandatory grace period shall still apply to all loans extended by all covered financial institutions irrespective of their place of operation. In this respect, lending institutions shall implement a 30-day grace period for all loan payments with principal and interest falling due within the period of MECQ without incurring interest on interest, penalties, fees, and other charges. Lending institutions shall also implement an additional 30-day grace period for loan accounts that qualified for an initial 30-day grace period with new due date falling within the MECQ period without incurring interest on interest, penalties, fees, and other charges.
2. Will the mandatory grace period under the Bayanihan Act apply if the entire country is placed under General Community Quarantine (GCQ)?
A: No. The mandatory grace period under the Bayanihan Act shall only apply if there are still areas in the country under ECQ or MECQ. The application of the mandatory grace period shall only cease once the ECQ and MECQ are lifted in the entire country.
