Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT MANDATING A MORATORIUM OF FINANCIAL OBLIGATIONS UNDER STATE 
OF CALAMITY 
EXPLANATORY NOTE 
Section 5, Article Il of the 1987 Constitution provides that “The maintenance of peace and 
order, the protection of life, liberty, and property, and the promotion of general welfare are 
essential for the enjoyment by all people of the blessings of democracy.” 
Section 17, Article Il of the same Constitution further provides that “The State affirms labor as 
a primary social economic force. It shall protect the rights of workers and promote their 
general welfare.” 
Sec. 3 of Republic Act No. 10121 defines a State of calamity, in the context of disaster 
management in the Philippines, as a condition involving mass casualty and/or major damages 
to property, disruption of means of livelihoods, roads and normal way of life of people in the 
affected areas as a result of the occurrence of natural or human-induced hazard.  
This proposed measure seeks to mandate a moratorium on all financial obligations declared 
by the President as suffering under a state of calamity, martial law, insurgency, or other 
emergency situation, in order to help alleviate the burden of our affected industries and fellow 
countrymen.  
It is the responsibility of the State to protect its citizens. Unprecedented times call for 
unprecedented solutions. With millions of livelihoods at stake, our solutions must be 
calibrated at hand.  
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
February 10, 2023
3:47 pm
7137


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
______________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT MANDATING A MORATORIUM OF FINANCIAL OBLIGATIONS UNDER STATE 
OF CALAMITY 
SECTION 1. Short Title. This Act shall be known as the "MSME Calamity Protection Act". 
SECTION 2. Declaration of Policy. 
Section 5, Article Il of the 1987 Constitution provides that “The maintenance of peace and 
order, the protection of life, liberty, and property, and the promotion of general welfare are 
essential for the enjoyment by all people of the blessings of democracy.” 
Section 17, Article Il of the same Constitution further provides that “The State affirms labor as 
a primary social economic force. It shall protect the rights of workers and promote their 
general welfare.” 
“Furthermore, Section l , Article XIII of the same Constitution mandates Congress to give 
highest priority to the enactment of measures that protect and enhance the right of all people 
to human dignity, reduce social, economic, and political inequalities by diffusing wealth and 
political power for the common good." Relief of those suffering the ravages of calamities 
constitutes a prime concern of the Government. In order to sustain and spur economic growth, 
opportunities shall be afforded to Non-Essential Businesses, MSMEs, and other debtors to 
alleviate themselves and enable them to pay their financial obligations under circumstances 
beneficial to them. It is hereby declared as the policy of the State to mandate a moratorium 
on all financial obligations under state of calamity. 
SECTION 3. Definition of Terms. — For purposes of this Act, the following terms 
are hereby defined: 
"Debtors" — refers to individuals, firms, organizations, or other entities that owe money or are 
unable to make a payment to a bank, lender, creditor, landlord, mortgagee, or other financial 
institution or entity at a particular time. 
"Enhanced Community Quarantine (ECQ)" — refers to the implementation of strict home 
quarantine in all households, suspension of transpiration, provision for food and regulated 
7137


 
essential health services, and heightened presence of uniformed personnel to enforce 
quarantine procedures in order to prevent the spread of COVID-19, as imposed on all of 
Luzon under Presidential Proclamation No. 929 dated 17 March 2020. 
 
"Financial Institution" — refers to all lenders, whether public or private, including: (l) banks, 
quasi-banks, non-stock savings and loan associations, credit card issuers, pawnshops and 
other credit granting institutions under the supervision of Bangko Sentral ng Pilipinas, 
Securities and Exchange Commission, and Cooperative Development Authority; (2) 
Government Service Insurance System; (3) Social Security System; and (4) Home Mutual 
Fund or PAG-IBIG Fund. 
 
"Financial Obligation" — refers to the responsibility to meet scheduled payments owed to an 
individual (i.e. landlord), corporation, or financial institution at a particular time. 
 
"Moratorium" — refers to the authorized temporary suspension of activities or payment due 
in a particular time in order to respond to financial hardship during emergencies that disrupt 
normal activities until the related issues are resolved or future events warrant the lifting of the 
suspension. 
 
"Micro, small, and medium-scale enterprise (MSME)" — refers to any business activity or 
enterprise engaged in industry, agribusiness and/or services, regardless of the type of 
ownership - sole proprietorship, cooperative, partnership or corporation, and whose total 
assets, have a value falling under the following categories: 
 
At least Not more than Employees 
 
Micro P 3,000,000 1-9 employees 
 
Small P 3,000,001 P 15,000,000 10-99 employees 
 
Medium P 15,000,001 P 100,000,000 100-199 employees 
 
"Non-Essential Businesses" — refers to private establishments not in the business of 
providing basic necessities and not engaged in rendering activities related to food and 
medicine production, such as public markets, supermarkets, groceries, convenience stores, 
hospitals, medical clinics, pharmacies, and drug stores, food preparation and delivery 
services, water-refilling stations, manufacturing and processing plants of basic food products 
and 
medicines, 
banks, 
money 
transfer 
services, 
power, 
energy, 
water 
and 
telecommunications supplies and facilities, compliant with the Memorandum of the Executive 
Secretary dated 13 March 2020. 
 
"Social Agency Contributions" — refers to compulsory payments made to Government 
Owned and Controlled Corporations that provide entitlement to receive a future social benefit 
such as SSS, GSIS, HDMF, and the Philippine Health Insurance Corporation (PhilHealth). 
 


 
"State of Calamity" — refers to the condition involving environmental catastrophe, threats to 
public health and/or safety, mass casualty, and/or major damages to property, and other 
analogous situations resulting with the disruption of means of livelihoods, roads, and normal 
way of life of people in the affected areas as a result of the occurrence of natural or human-
induced hazard, as declared by the President of the Philippines to take effect in a locality or 
for the entirety of the country for a set period of time. 
 
SECTION 4. Moratorium of Financial Obligations under State of Calamity. Enforcement of 
payment of all debts or other financial obligations payable within the Philippines for the 
duration of the State of Calamity as declared by the President, to apply in a particular locality 
or throughout the entire country, as the case may be. 
 
A moratorium on the payment of all financial obligations shall be mandated for the purpose 
of easing the burden of Non-Essential Businesses, MSMEs, and other debtors affected and 
disrupted by the calamity. 
 
SECTION 5. Scope of Moratorium. This Act mandates all financial institutions whether public 
or private, to defer payments of financial obligations owed to them. The beneficiaries of this 
Act are applicable to all of Non-Essential Businesses, MSMEs, and other debtors that have 
financial obligations with financial institutions, landlords, or other entities due within the ECQ 
period. The financial obligations to be temporarily suspended under the scope of 
moratorium include: 
 
(i) payroll costs, 
(ii) social agency contributions, 
(iii) materials and supplies, 
(iv) utilities, 
(v) mortgage payments, 
(vi) insurance payments, 
(vii) commercial and residential rent, 
(viii) creation of new businesses and renewal of existing business, 
(ix) repurposing existing capital, and 
(x) any other financial obligations that were incurred before the covered 
period. 
 
Provided, however, that in the event that any of the aforementioned financial obligations be 
required to be paid by a Presidential decree or order, for purposes of ensuring the continuity 
of the economy, emergency measures shall be applied in order to protect the payor MSME, 
including but not limited to economic and social amelioration, tax payment credit for future 
payments, economic bailout, and other analogous situations. 
 
SECTION 6. Duties of Financial Institutions. Financial institutions are mandated to grant a 
moratorium on the payment of financial obligations of Non-Essential Businesses, MSMEs, 
and other debtors. 
 


 
They are likewise directed to continue rendering their respective services and activities from 
the time prior to the calamity until six (6) months after the lifting of the ECQ of 2020, without 
incurring interests, penalties, fees, evictions, and other charges. 
 
SECTION 7. General Principles in Relieving Non-Essential Businesses and 
MSMEs. 
 
a. Sustainability: businesses shall be temporarily relieved of pending financial obligations for 
the purpose of avoiding laid off or displaced workers and business closure, and ensuring 
continued operations; 
b. Security: deferral of financial obligations enables businesses and workers to save, prioritize 
and allocate their funds for any losses or damages incurred during the COVID-19 outbreak; 
c. Self-sufficiency or resiliency: businesses that have adopted new arrangements and 
operations to adjust and adapt to the COVID-19 outbreak and ECQ impositions shall be more 
prepared and protected from future economic shocks. 
 
SECTION 8. Establishment of Crisis or Calamity Inter-Agency Taskforce. To set a conducive 
environment for moratorium, the participation of Government agencies is needed, and the 
Inter-Agency Task Force is hereby established, comprising of the Departments of Trade and 
Industry (DTI), Finance (DOF), Budget and Management (DBM), Labor and Employment 
(DOLE), National Economic and Development Authority (NEDA), and the Bangko Sentral ng 
Pilipinas. Their national, regional, and provincial offices shall, to their best efforts, provide 
grants, necessary support and assistance to financial institutions mandated to grant 
moratorium under this Act. 
 
The IATF shall create a centralized database, in which all IATF members can access with 
ease for the purpose of monitoring the compliance of financial institutions in implementing 
moratorium within the prescribed period of this Act, and ensuring that the total amount of 
assistance received by the financial institutions are rational and appropriate to the response 
needed to continue their operations and rendered services and activities, retain workforces, 
and maintain payroll costs. 
 
SECTION 9. Oversight Body for MSMEs. To specifically protect the growth and development 
of MSMEs, the Micro Small and Medium Enterprises Development (MSMED) Council shall 
help establish the necessary environment and opportunities conducive to the MSME sector 
including the monitoring the compliance of financial institutions in implementing moratorium 
for MSMEs and recommending policies to Congress on concerns affecting MSMEs. 
 
SECTION 10. Recompense. The IATF shall repay/grant financial institutions the total amount 
to carry out and sustain moratorium measures, with the schedule and period of repayment to 
be determined. 
 
Not later than fifteen (15) days after the date of enactment of this Act, the IATF shall issue 
guidelines and regulations implementing this section, including the target beneficiaries and 
the estimated total amount of grants to be provided for repayment. 
 


 
SECTION 11. Monitoring the Economic Impact of Moratorium. NEDA shall continue to 
monitor and analyze the impact of COVID-19 on the economy in order to ensure the proper 
use of funds, and submit a monthly report to Congress. Upon the recommendation of NEDA, 
the IATF may adjust the allocation of the funds provided. Should any adjustment be made, 
the report and pronouncement must be published. 
 
NEDA shall submit to Congress its summarized findings of the economy during the COVID-
19 outbreak and the impact of moratorium on different sectors and industries, along with a 
recommended long-term plan for building economic preparedness and resilience, not later 
than six (6) months after the lifting of the ECQ. 
 
The recommendation plan shall serve as a strategy for measuring economic preparedness 
and resilience and as a means to address structural reforms needed to strengthen the ability 
of the economy to withstand disruptions such as the COVID-19 outbreak. 
 
SECTION 12. Release and Use of Funds. — The amount to be allocated shall be released 
by the DBM to the relevant agencies of the IATF-EMI in compliance with pre-existing 
accounting, auditing, and budgeting laws, rules and regulations. The DBM and NEDA, in 
coordination with the IATF, shall issue the guidelines necessary for the appropriate 
expenditure of this budget. 
 
SECTION 13. Fund Sources. - The amounts necessary to implement this Act shall be 
included in the annual General Appropriations Act. 
 
SECTION 14. Existing Industrial Policies — Industrial policies that obstruct the responses of 
Non-Essential Business and MSMEs in coping with the economic effects of COVID-19 shall 
be revised accordingly. 
 
The DTI, in consultation with the Anti-Red Tape Authority (ARTA), shall review existing 
industrial policies and will recommend the removal or revision of rules and regulations that 
hinder the goals of business security sustainability during and post-ECQ period. 
 
SECTION 15. Penal Provisions. — Anyone found to be in violation of Section 6 shall be 
penalized with a fine of not less than one hundred thousand pesos (Php 100,000.00) but not 
more than one million pesos (Php 1,000,000.00) and imprisonments from two (2) months to 
six (6) months, or both. 
 
Provided, however, That if the offender is a corporation, association, partnership or juridical 
person, the penalty shall be imposed upon the executive(s), directors, managers, or 
managing partners who participated in the offense, or who have knowingly permitted or failed 
to prevent the offense of the same. 
 
Provided, further, That if the offender is a public official or employee, he shall, in addition to 
the penalties prescribed herein, suffer perpetual or temporary absolute disqualification from 
office, as the case may be. 
 


 
SECTION 16. Separability Clause. If, for any reason or reasons, any part of the provision of 
this Act shall be held to be unconstitutional or invalid, other parts or provisions hereof which 
are not affected thereby shall continue to be in full force and effect. 
 
SECTION 17. Repealing Clause. All laws, decrees, orders, rules, and regulations, or parts 
thereof, inconsistent with the provisions of this Act are hereby repealed, amended, or modified 
accordingly. 
 
SECTION 18. Effectivity Clause. This Act shall take effect after fifteen (15) days following its 
publication in the Official Gazette and at least two (2) newspapers of general circulation. 
 
Approved,