Title
Interest Remission on Local Gov't Debts
Law
Republic Act No. 205
Decision Date
May 28, 1948
Republic Act No. 205 provides financial relief to provincial, city, and municipal governments in the Philippines by remitting interest accrued on their obligations to the National Government or government-owned or controlled corporations during the specified period, and extending the payment period, allowing these governments more time to fulfill their obligations.
A

Extension of Payment Period

  • The payment period for amortization of these obligations is extended.
  • The extension is for a term of four years and six months.
  • The extension period is counted from the original due date of each respective obligation.

Purpose and Scope

  • The law aims to enable local governments to stabilize their finances.
  • Applies specifically to provinces, cities, and municipalities in the Philippines.
  • Covers obligations owed to the National Government or government-owned/controlled corporations.

Effectivity

  • The law takes effect immediately upon approval.
  • Provides immediate relief and financial rearrangement for local government units upon implementation.

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