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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. __~’ 6818

Introduced by REP. AURELIO “DO!

XPLANATOR’

In December 2019, an unknown strain of virus (later named and identified as Novel Corona
Virus/COVID-19) originated from the City of Wuhan, the capital of the Province Hubei in Main-
land China has sparked a global anxiety and caused dramatic mischief worldwide because of its
pernicious incurable character.

The COVID-19 pandemic has seriously disrupted business operations worldwide be it a small
scale or large one, leading to a dramatic increase in job losses. This economic phenomena
threatens the ability of many businesses to meet their financial obligations including monthly
amortizations in commercial and business establishments. For many, they may not be able to
meet monthly amortizations, rental payments, expenses incurred for their utilities, and even de-
cent daily sustenance for their employees.

Emotional Stress, Mental and Emotional Anxiety, and Sleepless Nights often hound borrowers as
their finances go off target. During these tough and trying times, a government that ensures an
adequate protection and prompt assistance to struggling businesses is needed.

‘The proposed bill will provide a moratorium on the enforcement for the payment of principal
Joan or monthly amortizations be it a personal, business loan, or any kind of loan with interest
bearing obligation, credit accommodation or financial obligations to aid individuals and busi-
nesses harmed by the pandemic.

‘The application of moratorium on the enforcement for the payment of all loans, credit accommo-
dations, or financial obligations shall be applied to all_public or private financial institutions or
financial intermediaries engaged in lending and borrowing of money be it formal or informal one
for the entire duration of the national public health emergency and for 180 days from the time of
the lifting or termination of the national public health as declared by the President through the
recommendation of NDRMMC or DOH as the case maybe:


‘These protections are designed to alleviate the economic and financial displacement of individu-
als and businesses due to the outbreak of Corona Virus.

In view of the foregoing, the immediate passing of this bill is earnestly sought.

lay

REP. AURELIO “DONG” D. GONZALES, JR
3rd District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6818
HOUSE BILL NO.

Introduced by REP. AURELIO “DONG” D. GONZALES, JR.

AN ACT IMPOSING FOR A MANDATORY MORATORIUM ON THE ENFORCEMENT
OF MONTHLY PRINCIPAL PAYMENTS OR MONTHLY AMORTIZATIONS ON ALL
LOANS, CREDIT ACCOMMODATIONS, OR FINANCIAL OBLIGATIONS TO FI-
NANCIAL INSTITUTIONS OR FINANCIAL INTERMEDIARIES ENGAGED IN THE
LENDING AND BORROWING OF MONEY FOR THE ENTIRE DURATION OF THE
NATIONAL HEALTH EMERGENCY AND FOR 180 DAYS FROM THE TIME OF ITS
TERMINATION OR LIFTING

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assem-
bled:

Section 1. Title. - This Act shall be known as “Monthly Amortization Moratorium Act of
2020”

Section 2. Declaration of Policy. ~ It is hereby declared as national policy to:

1, Provide adequate relief and protection to those who are affected by the world wide pan-
demic as declared by the World Health Organization.

2. To aid individuals and businesses in their financial obligations during these catastrophic
events and disasters.

3. Protect individuals and business operations due to the temporary suspension of economic
and some commercial activities brought forth by COVID-19 pandemic.

Section 3. Moratorium for the Payment of Loans. A moratorium is hereby imposed on the en-
forcement of monthly principal payments or monthly amortization against all loans, credit ac-
commodations or financial obligations of any kind be it formal or informal, from public or pri-
vate financial institutions or financial intermediaries for the entire duration of the national public
health emergency and for 180 days thereafter from the time of the lifting or termination of the
national public health emergency as declared by the President through the recommendation of
IATF, DOH, or NDRRMC as the case maybe.


Section 4. Payment of Accrued Interests and Interest Payments. During the enforceability of
the moratorium, the borrower of loan, credit accommodation, or financial obligation shall pay the
accrued interests and forthcoming monthly interest.

Section 5. Inapplicability of the Moratorium. This Act shall be inapplicable to borrower who
defaulted payment or those who are not in good credit standing prior to the declaration of Na-
tional Public Health Emergency or State of Calamity by the President.

Section 6. Voluntary Payments. Voluntary payments of all loans, credit accommodations or
financial obligations including interest payments made by the borrower during the period of the
moratorium shall be accepted by the financial institutions or financial intermediaries and shall be
in writing.

Section 7. Post-Moratorium Payment of Loans. After the duration of the national public
health emergency and for 180 days thereafter from the time of the lifting or termination of the
national public health as declared by the President through the recommendation of IATF, DOH,
‘or NDRRMC as the case maybe, the financial institution or financial intermediary may start the
collection of monthly amortizations of all loans, credit accommodations or financial obligations
including interest payments. The effect of this Act shall be carried over and added to the month-
ly payments due to the borrower.

Section 8. Implementing Rules and Regulations. Within sixty (60) days from the effectivity of
this Act, the Department of Finance, in consultation with the other relevant government agencies
and stakeholders, shall issue necessary rules and regulations to implement the provisions of this
Act.

Section 9. Separability Clause. — If, for any reason, any part or provision of this Act is declared
invalid or unconstitutional, the remaining parts or provisions not affected thereby shall remain in
full force and effect.

Section 10. Repealing Clause. — All laws, decrees, executive orders, rules and regulations or
other issuances or parts thereof contrary to or inconsistent with the provisions of this Act are
hereby repealed, amended, or modified accordingly.

Section 11. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in any newspaper of general circulation.

Approved,