GSIS grants moratorium on loan payments

MANILA, Philippines — State-run Government Service Insurance System (GSIS) has granted a three-month moratorium on loan payments to provide relief to its members and pensioners amid the coronavirus disease 2019 or COVID-19 pandemic.

In a statement, GSIS president and general manager Rolando Macasaet said the state pension fund’s board of trustees issued Resolution 42-2020 approving the moratorium on loan payments due for the months of March, April, and May 2020.

“We hope that this 90-day grace period will give our members some financial relief in these trying times,” Macasaet said.

The GSIS chief said the extension is pursuant to Section 4(aa) of Republic Act 11469 or the Bayanihan to Heal as One Act, which instructs all lending institutions to grant a 30-day grace period on loan payments during the enhanced community quarantine period without imposing interest or penalties on borrowers.

Under the board resolution, the collection of loan payments due for the months of March, April and May 2020 shall be deferred until June 1 without penalty or additional interest.

All loan terms, as a result of the moratorium, shall be effectively extended by three months.

Aside from regular government employees, retirees with pension loans are also covered by the moratorium.

“We are halting loan deductions in their next month’s pension (in May),” Macasaet said.

According to GSIS, all borrowers are automatically covered by the moratorium, except those whose loan accounts are in default as of Feb. 29, 2020. GSIS considers a loan in default when the account has incurred more than six months of unpaid amortizations.

In line with the resolution, Macasaet said the GSIS has already issued a memorandum circular instructing all heads of government agencies to stop loan deductions for the months of March, April and May 2020.

He, however, emphasized that premium contributions of government employees will continue to be deducted and remitted to GSIS.