QuestionsQuestions (EXECUTIVE ORDER NO. 113)
The State’s policy is to spur agricultural development through the provision of financial and other incentives to encourage investments in agriculture.
CALF is a consolidated fund for all agricultural and agriculture-related loan funds. It is composed of (1) government-owned funds administered by the Central Bank, (2) loanable funds for agricultural commodities/activities sourced from the National Treasury and administered by government agencies/corporations/banks, and (3) funding of foreign-assisted projects subject to negotiation with foreign institutions in consultation with the Central Bank and NEDA.
Funds from foreign sources where the Central Bank is the original or ultimate borrower are not covered by E.O. No. 113, together with their counterpart funds.
By other sources such as general appropriations, loans, donations, and grants within and outside the country.
All agreements for administration of such government-owned and/or National Treasury-sourced funds are deemed terminated. Agencies, including the Central Bank, must transfer funds (and their assets and liabilities) within one (1) month from effectivity.
No. Termination does not affect obligations incurred by third parties; those obligations continue to be in force and effect until fully liquidated.
The Ministry of Agriculture and Food (MAF) assumes all rights and obligations pertinent to the administration of the funds transferred to CALF.
They may be transferred to CALF subject to negotiations with the respective foreign institutions concerned.
CALF is under the control and supervision of MAF, and MAF is directly responsible for its management.
MAF may designate a trustee bank which, upon MAF’s direction, invests CALF’s unencumbered cash resources not needed for current operations into bonds and other authorized or government-guaranteed securities for CALF’s account.
No. MAF is prohibited from lending directly to end-users. It must administer funds through the banking system, except for the GFSME and QGFB, and without prejudice to providing a guaranty system from an appropriate source.
Earnings may be utilized for agriculture projects and agriculture-related activities, including those of the Agricultural Credit Policy Council (ACPC), as MAF may deem necessary.
ACPC is established to replace the Presidential Committee on Agricultural Credit (PCAC) and the Technical Board for Agricultural Credit (TBAC).
The Minister of MAF is Chairman; the Governor of the Central Bank is Vice-Chairman; the Director-General of NEDA is a member; the Minister of Budget and Management is a member; and the Minister of Finance is a member.
It assists MAF in synchronizing credit policies and programs for activities such as land development, farm mechanization, inputs, transportation/storage, processing, marketing, small farm financing, and resource mobilization. It reviews/evaluates economic soundness of credit programs, requires prior approval of all proposed agricultural credit programs before submission to approving/funding agencies (domestic or foreign), and receives all reports/documents of credit-financing programs.
All proposed agricultural credit programs must have the prior approval of the ACPC before submission to the approving or funding agency, whether domestic or foreign.
The Executive Director is appointed by the Council and implements Council programs/projects/decisions. He prepares an organizational plan and plantilla of personnel subject to Council approval.
It takes effect immediately. The separability clause ensures that if any portion is declared unconstitutional, the remaining provisions can still be given effect to accomplish the objectives, provided they can stand and be applied in full.
All laws, orders, issuances, rules, regulations, or parts thereof inconsistent with E.O. No. 113 are repealed or modified.