Question & AnswerQ&A (Republic Act No. 7202)
The main policy is to restitute the losses suffered by sugar producers due to actions taken by government agencies, aiming to revive the economy in the sugar-producing areas of the country.
The crop years covered are from 1974-1975 up to and including 1984-1985.
Funds recovered by the Government through the Presidential Commission on Good Government or any other agency from assets or funds determined to have been stolen or illegally acquired from the sugar industry are to be used for compensation.
They are required to condone interest charged in excess of twelve percent (12%) per annum, remove all penalties and surcharges, and amortize the recomputed loans over thirteen years including a three-year grace period, with interest set at twelve percent per annum.
No, sugar producers with pending sequestration or ill-gotten wealth cases before any administrative or judicial body are not entitled to benefits; any recovery related to them will be placed in escrow until final resolution of the case.
Yes, accounts with banks under liquidation or receivership by the Central Bank are covered by this Act's provisions.
The Central Bank is responsible for providing refinancing to restructuring banks under terms similar or better than those in the Act and promulgating necessary rules and regulations for the Act's implementation.
The Commission on Audit is tasked with auditing and certifying the restructuring package and computations.
If any provision is held unconstitutional or invalid, other provisions not affected shall remain in full force and effect.
The Act took effect upon its publication in two newspapers of general circulation.