Memorandum Circular No. 59 Entitled "Directing All Government Financial Institutions to Grant a Moratorium on Loan Payments of, and Extend Interest-Free Loans to, Individuals and Entities Directly Affected by the Calamity Arising from Typhoon Yolanda"

December 18, 2013 BLGF MEMORANDUM CIRCULAR NO. 108-13 TO : All Central and Regional Directors of This Bureau and All Others Concerned SUBJECT : Memorandum Circular No. 59 Entitled "Directing All Government Financial Institutions to Grant a Moratorium on Loan Payments of, and Extend Interest-Free Loans to, Individuals and Entities Directly Affected by the Calamity Arising from Typhoon Yolanda" For the information and guidance of all concerned, attached is a copy of the Memorandum dated December 2, 2013 of Director Lourdes Z. Santiago, Central Administration Office, Department of Finance regarding Memorandum Circular No. 59 dated November 26, 2013 of the Office of the President. The Central and Regional Directors of this Bureau are hereby instructed to take note of the above Memorandum and disseminate the contents thereof to Bureau Staff and others concerned. Be guided accordingly. AaDSTH (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director ATTACHMENT Department of Finance December 2, 2013 Memo for : Heads of Offices This Department Heads of Bureaus/Attached Agencies Department of Finance From : Director Lourdes Z. Santiago Subject : Memorandum Circular No. 59 entitled "DIRECTING ALL GOVERNMENT FINANCIAL INSTITUTIONS TO GRANT A MORATORIUM ON LOAN PAYMENTS OF, AND EXTEND INTEREST-FREE LOANS TO, INDIVIDUALS AND ENTITIES DIRECTLY AFFECTED BY THE CALAMITY ARISING FROM TYPHOON YOLANDA" Attached for information and guidance is a copy of Memorandum Circular No. 59 dated November 26, 2013 of the Office of the President on the above-captioned subject. CAcEaS (SGD.) LOURDES Z. SANTIAGO Director IV Central Administration Office Malacaang Records Office Manila, November 27, 2013 Hon. Cesar V. Purisima Secretary Department of Finance Manila Sir: I have the honor to transmit for your information and guidance, certified copy of Memorandum Circular No. 59 dated November 26, 2013 entitled "DIRECTING ALL GOVERNMENT FINANCIAL INSTITUTIONS TO GRANT A MORATORIUM ON LOAN PAYMENTS OF, AND EXTEND INTEREST-FREE LOANS TO, INDIVIDUALS AND ENTITIES DIRECTLY AFFECTED BY THE CALAMITY ARISING FROM TYPHOON YOLANDA." Thank you. Very truly yours, (SGD.) MARIANITO M. DIMAANDAL Director IV November 26, 2013 MEMORANDUM CIRCULAR NO. 59 DIRECTING ALL GOVERNMENT FINANCIAL INSTITUTIONS TO GRANT A MORATORIUM ON LOAN PAYMENTS OF, AND EXTEND INTEREST-FREE LOANS TO, INDIVIDUALS AND ENTITIES DIRECTLY AFFECTED BY THE CALAMITY ARISING FROM TYPHOON YOLANDA WHEREAS, Typhoon Yolanda (international codename: Haiyan) caused widespread destruction, substantial damage, and death in several areas, including Samar, Leyte, Negros, Cebu, Bohol, Capiz, Aklan, Antique, Iloilo and Palawan; WHEREAS, as a result thereof, the President declared a State of National Calamity pursuant to Proclamation No. 682 (s. 2013); WHEREAS, there is a need to provide financial relief to individuals and entities directly and adversely affected by the calamity; WHEREAS, the power of the President of the Philippines to issue directives to government-owned or -controlled corporations (GOCCs), which includes government financial institutions (GFIs) under Republic Act (RA) No. 10149, stems from the President's power of control over all executive departments, bureaus, and offices under Section 17, Article VII of the 1987 Constitution, and Section 1, Chapter 1, Title I, Book III of the Administrative Code of 1987; and acTDCI WHEREAS, pursuant to Section 17 (d) of RA No. 10121, or the "Philippine Disaster Risk Reduction and Management Act of 2010," the declaration of a state of calamity makes mandatory the granting of no-interest loans by government financing or lending institutions to the most affected section of the population through their cooperatives or people's organizations. NOW, THEREFORE, all GFIs are directed to grant a six-month moratorium on the payment of outstanding loans of individuals and entities directly and adversely affected by the calamity, subject to their respective charters and applicable laws, rules, and regulations. All GFIs are likewise directed to expedite the extension of, and provide the necessary assistance relative to documentary submissions for, interest-free loans to individuals and entities directly and adversely affected by the calamity, subject to their respective charters and applicable laws, rules, and regulations. This Memorandum Circular shall take effect immediately. DONE in the City of Manila, this 26th day of November, in the year of Our Lord, Two Thousand and Thirteen.