Republic of the Philippines
HOUSE OF REPRESENTATIVES

Second Regular Session
17th Congress

6026

HOUSE BILL NO.

Introduced by Representative Makmod D. Mending, Jr.
AMIN Party-list

EXPLANATORY NOTE

The Marawi Siege that started on May 23, 2017 between Philippine
government security forces and ISIS-inspired Maute group caused severe
devastation to residents of Marawi City in an unprecedented scale.

The residents of Marawi are faced with humanitarian and economic
crises of severe proportions due to the extent of the devastation to life and
property. The burden of rebuilding their homes and livelihood pose additional
suffering especially upon those who have to meet financial obligations during
this period of extreme difficulty.

During these armed conflict, it is hard enough for the affected residents
to recover from their loss. Hence, it is the obligation of the State to help those
affected by this crisis to lessen their burdens as much as possible.

One of the concrete measures that can be done to ease the burden of
the affected residents and to aid efforts towards rehabilitation, recovery and
rebuilding of lives is to grant a debt moratorium on the payment of the
principal amount, accrual and collection of interests, penalties and surcharges


on all loans, credit accommodations or financial obligations, whether from
private or public financial institutions, obtained by all residents of Marawi City
who suffered financial loss or damage to property during the armed conflict.

This bill seeks to provide the Marawi residents who suffered from the
devastation of war, an opportunity to immediately recover from damage to
property and financial loses.

In view of the foregoing reasons, support for the immediate approval of
this bill is earnestly sought.

MAKMOD D. MENDING, JR.


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Republic of the Philippines
HOUSE OF REPRESENTATIVES

Second Regular Session
17" Congress

House Bill No. 6026

Introduced by Representative Makmod D. Mending, Jr.
AMIN Party-list

AN ACT
GRANTING A THREE-YEAR DEBT MORATORIUM TO AFFECTED RESIDENTS OF
MARAWICITY

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Marawi Debt
Moratorium Act.”

SEC. 2. Declaration of State Policy. — \t is a declared policy of the State
to afford Marawi residents, who suffered from the devastation of war, an
opportunity to immediately recover from damage of property and financial
losses.

For this purpose, the State supports the rehabilitation of Marawi City and

its citizens by imposing a moratorium on debt payments of all residents of

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Marawi City.

SEC. 3. Debt Moratorium. — For a period of three (3) years after the
effectivity of this Act, a debt moratorium is imposed on the payment of the
principal amount, accrual and collection of interests, penalties and surcharges
‘on all loans, credit accommodations, or financial obligations, whether from
private or public financial institutions, obtained by all residents of Marawi City
who suffered financial loss or damage to property during the armed conflict as
stated under Proclamation 216, Series of 2017 and its extension. The period of
debt moratorium may be extended for another two (2) years, if necessary, by
the Governor of the Bangko Sentral ng Pilipinas.

SEC. 4. Beneficiaries. - Only Marawi City residents who suffered financial
loss or damage to property during the armed conflict are qualified to avail of
the benefits under this Act.

Qualified residents must submit to the barangay chairperson who has
jurisdiction over the area their application, together with two valid
government issued identification cards (ID) and proof of financial loss or
damage to property. The barangay chairperson shall verify the documents
submitted and, if in order, shall recommend the issuance of the certificate of

claim.


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In the absence of government-issued ID, any identification document
acceptable in the banking industry may be allowed.

Within fifteen (15) days from receipt of the application, the barangay
chairperson of the barangay with jurisdiction over the residence of the
applicant, must act on the application and recommend the issuance of the
certificate of claim.

The mayor of Marawi City shall act upon the recommendation of the
barangay chairperson within five (5) days from receipt thereof, and after
verification, issue the necessary certificate of claim.

No person can avail of the debt moratorium under this Act unless that
person is issued a certificate of claim.

SEC. 5. Implementing Rules and Regulation. — Within sixty (60) days after
the effectivity of this Act, the Bangko Sentral ng Pilipinas shall issue the
necessary rules and regulations for the efficient and effective implementation
of this Act.

SEC. 6. Effectivity Clause. — This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved,