Non-Extension of Grace Period for Payment of Loans during the Enhanced Community Quarantine (ECQ) from 29 March to 04 April 2021

March 30, 2021 CORPORATE GOVERNANCE AND FINANCE DEPARTMENT TO : Financing Companies (FCs), Lending Companies (LCs), and Microfinance NGOs (MF-NGOs) SUBJECT : Non-Extension of Grace Period for Payment of Loans during the Enhanced Community Quarantine (ECQ) from 29 March to 04 April 2021 NOTICE The Securities and Exchange Commission (SEC) clarifies that no mandatory grace period was granted for the payment of loans and/or interest falling due within the Enhanced Community Quarantine (ECQ) period, from 29 March to 4 April 2021. The provision on the 30-day grace period for loan payments under Section [8] General Provisions, paragraph 2 of the Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines with Amendments as of March 28, 2021 1 pertains to the mandatory grace period mandated under Section 4 (aa) of Republic Act No. 11469, or the Bayanihan to Heal as One Act. FCs, LCs and MF-NGOs implemented said mandatory grace period from 17 March 2020 to 31 May 2020. The amended Guidelines issued by the Inter-Agency Task Force on Emerging Infectious Diseases does NOT extend the 30-day grace period mandated by the Bayanihan to Heal as One Act during the ECQ period from 29 March to 4 April 2021. Nonetheless, the SEC strongly encourages FCs, LCs, and MF-NGOs to continue implementing debt relief measures such as lowering of interest rates, waiver or reduction of penalties, charges and other fees, payment holiday, debt consolidation, extension of loan terms, and provision of flexible payment schedules, in view of the adverse impact of COVID-19 pandemic to the borrowing public, and based on the continuing assessment of their cash flows. Requests for debt relief shall be directed at the concerned FC, LC or MF-NGO. The SEC and other concerned regulatory bodies have granted prudential and regulatory relief measures to FCs, LCs, and MF-NGOs accredited under Republic Act No. 10693, otherwise known as the Microfinance NGOs Act, to enable them to continuously provide financial services, and support households and businesses amid the public health crisis. The SEC will also consistently and closely monitor the impact of the pandemic on FCs, LCs and MF-NGOs to immediately implement policies that shall sustain the regulated entities' operations and assist in their economic recovery. For your guidance. Footnotes 1. Uploaded on the Official Gazette website on 28 March 2021.