Bayanihan to Recover as One Act (BARO Act) is a supplement bill to the Bayanihan to Heal as One Act (BAHO Act) which provides for responses, recovery interventions and mechanisms to accelerate the recovery of the Philippine economy.

Nationwide

For payments falling due on or before 31 December 2020

All loans with principal and/or interest, including amortizations, falling due on or before 31 December 2020. However, the loan must be existing, current, and outstanding upon the effectivity of the BARO Act which is on 15 September 2020. Only loans that are in current status and not past due are covered by the BARO Act.

A non-extendible, mandatory one-time 60-day grace period shall be implemented for all existing, current, and outstanding loans with principal and/or interest, including amortizations, falling due from the effectivity of the BARO Act or from 15 September 2020 until 31 December 2020 without incurring interest on interests, penalties, fees, or other charges.

The 60-day grace period shall commence from the payment due date of loans with principal and/or interest, including amortizations, falling due from the effectivity of the BARO Act or from 15 September 2020 until 31 December 2020.

For example, the due date of a loan with monthly amortization falling due on 20 September 2020 shall be moved to 19 November 2020. Following this example, if the last payment due date of said loan before the application of the mandatory grace period is on 20 September 2024, said last payment due date shall be moved to 19 November 2024.

The application of the mandatory 60-day grace period under the BARO Act effectively moves the payment due dates of the entire loan.

Borrowers may opt not to avail of the mandatory grace period and pay their obligations as they fall due should they so desire.

If a borrower has multiple loans, one or some of which are past due, the mandatory grace period shall apply only to the other loans that are existing, current, and outstanding as of 15 September 2020.

Unless the borrower communicates his/her desire not to avail of the mandatory 60-day grace period, the same will automatically be applied.

For BSP’s Implementing Rules and Regulations and FAQ on Section 4(uu) of the Bayanihan to Recover as One Act, please see the links below:

BSP Memorandum No. M-2020-074: Implementing Rules and Regulations and FAQ on Section 4(uu) of the BARO Act

BSP Memorandum No. M-2020-068: Implementation of Section 4(uu) of the BARO Act

For the complete text of the Bayanihan to Recover as One Act, please see the link below:

Bayanihan to Recover as One Act