Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 323)
The primary policy objective is to support small and medium-size entrepreneurial activities, particularly those involved in poultry and hog raising industries.
The Central Bank (CB), the Philippine National Bank (PNB), and the Development Bank of the Philippines (DBP) are instructed to provide refinancing and restructuring of existing loans.
The refinancing and restructuring must be provided within fifteen (15) days after the signing of the Letter of Instructions.
The PCAC is tasked to revise the program of financing for small and medium industries, including feed mills, preferably giving loans on a supervised credit basis for individual cooperatives, and to utilize appropriate NEDA-IGLF funds and other available funds.
The intended beneficiaries are small and medium-scale poultry and hog raisers, as well as small feedmills experiencing difficulties in financing raw material requirements.
The Letter seeks to address their difficulties in repaying outstanding loans due to distressed industry conditions and their inability to recover from financial losses because of lack of credit.
Loans on a supervised credit basis are emphasized for individual cooperatives as part of the program revision by the PCAC.
Yes, it specifies the utilization of appropriate NEDA-IGLF (National Economic and Development Authority - Industrial Guarantee and Loan Fund) funds and other available funds.
The Letter of Instructions took effect immediately upon signing on September 29, 1975.