More on the Bayanihan 2 law
It is worth noting that the law also has an anti-discrimination provision, which protects individuals who have been declared, confirmed, suspected, probable, exposed, or recovered from Covid-19, including returning OFWS, health workers, frontliners, other service workers, and indigents. Punishment for people who will violate the law is six-month imprisonment and a fine of P100,000.
Last week in this column I presented a discussion on the allocation of the P165.5 billion Bayanihan 2 funds. This week I would like to briefly touch on the other provisions of the Bayanihan 2 law (Bayanihan to Recover as One Act or Republic Act 11494), which was signed by President Duterte on September 11.
In the said law, all banks, financing companies, lending companies, real- estate developers, insurance companies, pre-need companies, and other private and public financial institutions are being directed to grant a one-time 60-day grace period for the payment of loans, including credit-card payments, falling due on or before December 31, 2020 without having to pay any interests, penalties and other charges.
The financial institutions and non- bank financial institutions agreeing to loan term extensions or restructuring will be entitled to regulatory relief to be determined by the Bangko Sentral ng Pilipinas. The Government Service Insurance System, Social Security System, and Home Development Mutual Fund (PAG-IBIG Fund) are also covered by the new law.
Bayanihan 2 also allows the extension of the maturity of existing, current and outstanding loans, including but not limited to salary, personal, housing, commercial, and motor vehicle loans, amortizations, financial lease payments, and creditcard payments. Interbank loans and bank borrowings are, however, not covered in the provision.
Many families will be happy to know that, under the new law, there is also a 30-day reprieve for the payment of water, electric, telecommunication and other utility bills in areas covered by the enhanced community quarantine and the modified enhanced community quarantine— without additional charges. Unpaid utility bills after the grace period may be settled on an installment basis for a period of not less than three months. Meralco recently announced that there will be no service disconnections until the end of October.
Home and commercial renters will likewise be relieved to know that rent dues covered within the period of the community quarantine will also be given a 30-day grace period, without incurring interests, penalties, and other charges. The payments will be amortized in equal monthly payments until the end of this year. The law also prohibits the owners to impose any rent increase during the same period.
It is worth noting that the law also has an anti-discrimination provision, which protects individuals who have been declared, confirmed, suspected, probable, exposed, or recovered from Covid-19, including returning overseas Filipino workers, health workers, frontliners, other service workers, and indigents. Punishment for people who will violate the law is six-month imprisonment and a fine of P100,000.
It would be easy to overlook—but I hope that we do not—that the new law also includes a provision promoting the use of bicycles and the development of bike lanes. Additionally, the law offers an added form of direct assistance to farmers, fisherfolk and agri cooperatives by allowing national and local government agencies to directly purchase agricultural and fishery products from them.