QuestionsQuestions (IRR of Republic Act No. 9242-AMENDED)
EO 83 aims to strengthen compliance with PD 717 by the banking sector and to increase support to the agricultural and agrarian reform sectors, including through an alternative compliance mechanism.
Banks must allocate at least 25% of their loanable funds for agricultural credit, of which 10% must be made available to agrarian reform beneficiaries.
It cites these laws as having expanded or modified banking compliance modes with PD 717, showing that compliance can be met through various mechanisms beyond direct agricultural lending.
It allows development loans for educational institutions, cooperatives, hospitals/medical services, socialized/low-cost housing, and local government units without national government guarantee as part of PD 717 compliance modes (as described in EO 83).
It requires mandatory investment of all unused Agri-Agra allocation funds in socialized and low-cost housing.
Banks may be exempt from PD 717 compliance requirements when at least 5% of loanable funds are directly lent to farmers’ associations or cooperatives.
It allows investment in government securities declared eligible by BSP and investment of any portion of the amount set aside for agrarian reform credit not actually loaned out, as an alternative compliance mechanism.
Up to Fifty Billion Pesos (P50,000,000,000.00).
They shall be guaranteed by the Republic of the Philippines.
The purchase or underwriting of these bonds by the banking sector shall serve as compliance with the provisions of PD 717.
NDC and DAR jointly manage the Fund.
Exclusively for the development of the agriculture and agrarian sectors and for identified development priority projects of NDC and of the Department of Agriculture and Agrarian Reform (e.g., rice production joint ventures, establishment of food chains, livestock, agri-processing support services and facilities, and similar undertakings).
NDC acts as DAR’s corporate arm in the mobilization and utilization of the Fund.
The BSP, in close coordination with DOF, DAR, and NDC.
Examples include guarantees, concessional co-financing loans, equity or quasi-equity and quasi-debt instruments in project trusts bonds or securities of qualified project enterprises, and other models determined by NDC and DAR.
Interest income on the Agri-Agra ERAP Bonds is exempt from the payment of taxes, pursuant to Section 9 of PD 1648.
All issuances (executive/administrative orders and/or rules/regulations) or parts inconsistent with EO 83 are repealed or modified accordingly.
Its title is the “Launching of the NDC Agri-Agra Economic Recovery through Agricultural Productivity (ERAP) Bonds for Rural Development.” The title helps interpret legislative purpose and scope (rural development via Agri-Agra ERAP Bonds as an alternative compliance mechanism).