Declaration of Policy
- The law recognizes COVID-19’s severe impact on lives and the economy.
- Urgent measures include mitigation and containment of virus transmission.
- Mobilization of aid and provision of basic necessities to affected families, especially indigents.
- Prevent overburdening the healthcare system and provide comprehensive healthcare and testing.
- Implement recovery, rehabilitation, social amelioration, and safety nets.
- Ensure adequate funding, partnership with private sector, and protection of collective Filipino interests.
Authorized Powers of the President
- Exercise necessary powers to carry out national policy under Article VI, Section 23(2) of the Constitution.
- Adopt WHO-guided measures for education, detection, protection, and treatment.
- Expedite accreditation and testing for COVID-19; ensure treatment costs covered by PhilHealth.
- Provide emergency subsidies to low-income households based on regional minimum wage rates.
- Grant special risk allowances and hazard pay to public health workers.
- PhilHealth to cover medical expenses for health workers exposed or infected with COVID-19.
- Compensate health workers severely affected or deceased from COVID-19 with monetary amounts.
- Mandate LGUs to comply with national policies while respecting autonomy within defined parameters.
- Temporarily direct the operation of private health facilities and other establishments, with compensation and accounting requirements for owners.
- Enact measures against hoarding, profiteering, price manipulation, and other market abuses.
- Facilitate donation, acceptance, and distribution of health products with expedited clearance.
- Procure medical and relief goods exempt from usual government procurement laws prioritizing public health facilities.
- Partner with the Philippine Red Cross for humanitarian aid distribution.
- Engage temporary health human resources with appropriate compensation and hazard pay.
- Support agricultural and industrial productive sectors via credit availability and incentive liberalization.
- Maintain supply chains for essential goods and regulate transportation sectors during the emergency.
- Authorize alternative working arrangements in government and private sectors.
- Reallocate government budgets and funds, including quick response and calamity funds, to COVID-19 response.
- Empower the President to move statutory deadlines for filing or payment obligations to ease restrictions during quarantine.
- Impose mandatory grace periods for loan payments and residential rents without interests or penalties.
- Implement an expanded cash or in-kind assistance program for vulnerable households.
- Remove cap on quick response fund allocations during the emergency.
- Enforce other reasonable measures consistent with the Bill of Rights.
Reporting and Oversight
- Weekly reports to Congress on actions taken and fund usage.
- Creation of a Joint Congressional Oversight Committee with equal membership from Senate and House to monitor compliance.
Penalties
- Imprisonment of 2 months and/or fines ranging from P10,000 to P1,000,000 for violations such as:
- LGUs disobeying quarantine directives.
- Private establishments refusing lawful directives.
- Hoarding, profiteering, and market manipulations.
- Refusal to grant the 30-day grace period for loans and rents.
- Spreading false or panic-inducing information on COVID-19.
- Obstruction and illegal encroachments on public roads and places.
- Enhanced penalties and disqualification from public office for officials committing offenses.
- Deportation for alien offenders.
Legal Interpretations and Effectivity
- The law supersedes conflicting statutes or orders.
- Severability clause protecting the validity of remaining provisions if one is invalidated.
- Effective immediately upon publication for three months unless extended or sooner withdrawn.
Implementing Rules and Regulations (IRR) for Loan Grace Period (Section 4(aa))
Purpose and Interpretation
- Establish guidelines for a mandatory 30-day grace period on loan payments during Enhanced Community Quarantine (ECQ).
- Liberally construed to maximize recovery and relief impact.
Definitions
- Covered Institutions: All financial lenders under BSP, SEC, CDA, and key government financial institutions.
- Loan Amortization: Scheduled payment of loan principal and/or interest.
- ECQ Period: March 17 to April 12, 2020.
- Due Date: Date when loan obligations fall due during ECQ.
Mandatory 30-Day Grace Period
- Applies to all loans with principal or interest due during ECQ.
- No interest on interest, penalties, or other charges during grace period.
- Grace period automatically extended if ECQ extended.
- No waivers of this grace period are valid; borrowers may still pay if they choose.
Scope and Application
- Applies to individuals, households, MSMEs, and corporate borrowers.
- Grace period applies separately to multiple loans held by the same borrower.
Effects of Grace Period
- Borrowers entitled to relief without added costs or documentary stamp taxes.
- Accrued interest can be staggered over loan term or paid in full after grace period.
Penalties and Enforcement
- Violations subject to penalties under the Bayanihan Act and other existing laws.
Effectivity
- IRR effective immediately upon publication with a separability clause for invalid provisions.