President and General Manager Rolando Ledesma Macasaet today announced that the Board of Trustees (BOT) of the Government Service Insurance System (GSIS) approved Resolution No. 42-2020 granting a moratorium on loan payments of GSIS members and pensioners, including housing loan amortization of borrowers.
“The GSIS Board of Trustees, in compliance with the “Bayanihan Heal as One” Law, decided to grant a moratorium to our borrowers,” Macasaet said. Section 4 (aa) of Republic Act 11469, otherwise known as the “Bayanihan Heal as One Law,” instructs all lending institutions to grant a 30-day grace period or extension on loan payments during the Enhanced Community Quarantine (ECQ) period without imposing interest or penalties on borrowers. Under the said GSIS Board Resolution, collection of loan payments due for the months of March, April and May 2020 shall be deferred.
GSIS will resume collection of loan payments on 01 June 2020 without penalty or additional interest. All loan terms, as a result of the moratorium, shall be effectively extended by three months.
“We hope that this 90-day grace period will give our members some financial relief in these trying times,” the GSIS chief stated. Aside from regular government employees, pensioners with GSIS pension loans will also get a moratorium. “We are halting loan deductions in their next month’s pension (in May),” Macasaet said.
GSIS housing loan borrowers will likewise not be required to pay their monthly amortizations during the said 3-month period. All GSIS borrowers are automatically covered by the moratorium, except those whose loan accounts are in default as of 29 February 2020.
GSIS considers a loan in default when the account has incurred more than six (6) months of unpaid amortizations. Macasaet said that GSIS already issued a memorandum circular (MC) 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. GSIS shall resume collection of loan payments on 01 June 2020.