The Land Bank of the Philippines is working closely with the Department of Agrarian Reform (DAR) to speed up the write off process on the remaining P43.17 billion loan of over 385,000 agrarian reform beneficiaries (ARBs).
Under the New Agrarian Emancipation Act signed by President Ferdinand Marcos Jr. last week, the national government recognizes as losses the amortization managed by Land Bank on P57.74 billion farmer loans as of end-June this year. The program relieves over 649,000 ARBs tilling 1.17 million hectares.
Of the P57.74 billion, government unilaterally condones P14.56 billion in principal loans of over 263,000 ARBs upon the effectivity of the law.
“We are proud to be part of this landmark initiative of the Marcos Administration to free farmers from debt and help them start anew. Land Bank will likewise continue to pour investments and extend support initiatives for farmers nationwide to boost their productivity and income,” said Lynette Ortiz, Land Bank president and chief executive officer.
The lender said the New Agrarian Emancipation Act condones the loans, including interest, penalties and surcharges on land awarded under the Tenant Emancipation Decree of 1972, the Comprehensive Agrarian Reform Law of 1988 and the Act strengthening the Comprehensive Agrarian Reform Program extending the acquisition and distribution of agricultural lands issued in 2009.
The DAR will issue the implementing rules and regulations in coordination with the Presidential Agrarian Reform Council Executive Committee and with the Land Bank within 60 days from the issuance of the policy.
Land Bank has so far extended P2.7 billion in loans to 2,356 individual and 469 agrarian reform cooperatives and farmer associations nationwide.
Apart from credit assistance, Land Bank also provides financial literacy and capability-building seminars to make sure borrowers are equipped with basic financial knowledge to manage their finances and boost their income.
