PAYABLES MORATORIUM FOR MSMEs TO SAVE MILLIONS OF JOBS
To avert massive permanent unemployment and major lasting damage to the economy, House deputy majority leader Rep. Bernadette Herrera filed House Bill 6621 (MSME Calamity Protection Act of 2020).
"At least one million workers nationwide have formally told the Department of Labor and Employment they lost their jobs because of the COVID-19 quarantine measures. That's just for the ones who applied for the DOLE cash grants. Unemployment could worsen as the quarantine measures stay in place," Herrera said.
With HB 6621, we cast a moratorium safety net to save the micro, small, and medium enterprises that employ most Filipinos," the Bagong Henerasyon party-list congresswoman also said.
The proposed moratorium covers the following expenses:
· payroll costs,
· social agency contributions,
· materials and supplies,
· utilities,
· mortgage payments,
· insurance payments,
· commercial and residential rent,
· creation of new businesses and renewal of existing business,
· repurposing existing capital, and
· any other financial obligations that were incurred before the covered period.
Beneficiaries covered are all "Non-Essential Businesses, MSMEs, and other debtors that have financial obligations with financial institutions, landlords, or other entities due within the ECQ period," according to the bill.
Aside from the moratorium, the bill requires financial institutions "to continue rendering their respective services and activities from the time prior to the calamity until six (6) months after the lifting of the ECQ of 2020, without incurring interests, penalties, fees, evictions, and other charges."
When the moratorium is lifted by presidential order "for purposes of ensuring the continuity of the economy, emergency measures shall be applied in order to protect the payor MSME."
Among the relief measures provided in the bill are "economic and social amelioration, tax payment credit for future payments, economic bailout, and other analogous situations."
As regards implementation, the bill requires the IATF to "create a centralized database, in which all IATF members can access with ease for the purpose of monitoring the compliance of financial institutions in implementing moratorium within the prescribed period." (END)
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