What is the fate of the credit support bill?
An enrolled bill which seeks to institutionalize direct credit support of the Land Bank of the Philippines (LBP) to agrarian reform beneficiaries, small farmers and fisherfolk may not have been signed by former President Benigno Simeon Aquino III before his term ended in June 30.
The term of the lawmakers also ended in June 30.
The bill, which amended the Agricultural Land Reform Code and the Agri-Agra Reform Credit Act of 2009, was approved by Congress in May 23 and transmitted to Aquino’s office in June 16 for signing.
The bill provides that the Land Bank shall be subject to the rules and regulations of the Bangko Sentral ng Pilipinas, amending the Agricultural Land Reform Code which extends the legal existence of LBP for 50 years from August 8, 2013.
It also mandates Land Bank to allocate 5 percent of its regular loan portfolio (net of loans to the BSP, interbank loans and availments from domestic bills purchase line) for socialized credit to qualified small farmers, fisherfolk and agrarian reform beneficiaries (ARBs).
The facility shall solely finance agricultural projects pursuant to the The Agri-Agra Reform Credit Act of 2009.
Credits extended to the beneficiaries under the facility shall be based on the feasibility of the project and their paying capacity, their estimated production, and/or securities they can provide as well as assets as may be acquired by them from the proceeds of the loan.