Title
Creation of CALF and ACPC for agri credit
Law
Executive Order No. 113
Decision Date
Dec 24, 1986
Corazon C. Aquino establishes the Comprehensive Agricultural Loan Fund (CALF) to consolidate agricultural credit resources and create the Agricultural Credit Policy Council (ACPC) for streamlined management and enhanced financing of agricultural development initiatives.

Q&A (EXECUTIVE ORDER NO. 113)

The State policy aims to spur agricultural development by providing financial and other incentives to encourage investments in agriculture.

CALF is a consolidated fund composed of all existing and future loan funds related to agriculture, including government-owned funds administered by the Central Bank, National Treasury-sourced loanable funds, and foreign-assisted project funds subject to negotiation.

Funds from foreign sources where the Central Bank of the Philippines is the original or ultimate borrower, along with their counterpart funds, are excluded from the CALF consolidation.

The Ministry of Agriculture and Food (MAF) is in charge of controlling and supervising the CALF, including designating a Trustee Bank for investing unemcumbered cash resources.

No, the MAF is not allowed to lend CALF funds directly to end-users but must administer the funds through the banking system, except for certain funds like the Guarantee Fund for Small and Medium Enterprises and the Quedan Guarantee Fund Board.

The ACPC supervises and synchronizes all credit policies and programs supporting agricultural priorities, reviews the economic soundness of agricultural credit programs, and ensures all proposed programs have its approval before submission to funding agencies.

The ACPC consists of the Minister of Agriculture and Food (Chairman), Governor of the Central Bank of the Philippines (Vice-Chairman), Director-General of the National Economic and Development Authority, Minister of Budget and Management, and Minister of Finance.

All such agreements are deemed terminated, and funds along with their assets and liabilities are transferred to the CALF. Obligations incurred by third parties remain in force until fully liquidated.

The Council may call on any government instrumentalities for human, technical, and financial support to achieve its objectives.

The Executive Director implements ACPC programs, projects, and decisions, prepares organizational plans and staffing, and is assisted by appointed Directors and other personnel necessary for ACPC functions.


Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.