Question & AnswerQ&A (MEMORANDUM ORDER NO. 85)
The main purpose is to direct the abolition of the National Livelihood Development Corporation (NLDC) and to provide for the transfer of its functions, assets, and liabilities to other government agencies, specifically the Land Bank of the Philippines (LBP) and the Small Business Corporation (SBC).
The NLDC was abolished pursuant to this order.
The assets and liabilities of the NLDC were transferred to the Land Bank of the Philippines (LBP).
The SBC is tasked to refocus its microfinance activities on small microfinance institutions (MFIs) serving hard-to-reach markets with risk profiles that do not qualify for bank credit and encourage creditworthy MFI partners to seek financing from LBP or private banks.
The GCG derives its authority to reorganize, merge, streamline, abolish, or privatize GOCCs from Section 5(a) of Republic Act No. 10149, also known as the aGOCC Governance Act of 2011."
The special window in LBP is for the provision of microfinance services to qualified microfinance institutions (MFIs) referred from NLDC.
Affected officials and personnel may avail of the options and benefits under Republic Act No. 6656 (s. 1988), which covers separation pay and other benefits.
The Department of Budget and Management (DBM) ensures sufficient funds to cover compensation for affected personnel.
The Technical Working Group is composed of representatives from the Land Bank of the Philippines, Small Business Corporation, Department of Finance, and the Department of Budget and Management.