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Lenders requested: Extend payment of loans for 1 year

All government and private financial entities have been requested to extend the payment of loans for one year and for all utility providers in Davao Region to extend the due dates of bills for three months.

Through the Resolution no. 06 series of 2020, the Regional Task Force 11 on COVID-19 requested these institutions to extend their due dates to provide relief to businesses and families by the pandemic.

It said in the resolution that measures have been applied in response to the pandemic and “these necessary measures being implemented in Davao Region have caused disruptions in jobs, businesses, transportation, school, and leisure activities.”

To cushion its impact, all government and private financial entities are requested to extend the payment of loans for one year for all of their clients in Davao Region with loans falling due not earlier than March 2020.

It also urged all utility providers in Davao Region are also requested to extend the due dates of bills falling due in March 2020 for three months.

Previously, the Davao City Chamber of Commerce and Industry, Inc. (DCCCII) urged banks to allow delayed business loans.

In a statement, DCCCII called on banks to allow borrowers to not pay their loans for at least two months as they, among them hotels and other tourism-related establishments, have incurred losses due to COVID-19 and the series of earthquakes from last year.

“Any reprieve from payments will help many businesses that have to deal with uncertainties brought by COVID-19,” DCCCII President John Carlo Tria said. “Many businesses will be planning their expenses as well to manage costs.”

The Securities and Exchange Commission also urged all lending and financing companies to extend debt relief to borrowers to help them cope with the impact of COVID-19 previously.

At present, a number of financing and lending companies have responded to the plea of SEC and adopted debt relief measures to help their borrowers.

One of those is the Philippine Finance Association which informed the Commission that at least 18 of its members have allowed the extension of payment deadlines, without penalties and fees, for borrowers.

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