QuestionsQuestions (Republic Act No. 10000)
It is known as the “Agri-Agra Reform Credit Act of 2009.”
To promote equal access to opportunities under sustained growth and expanding productivity by enhancing rural development—specifically by improving the rural agricultural sector’s access to financial services and programs that increase market efficiency and promote modernization.
A financial institution accredited by the Bangko Sentral ng Pilipinas (BSP) whose portfolios are substantially agri-agra related as defined by the implementing rules and regulations.
Farmers granted lands under PD 27, RA 6657, and RA 9700, plus regular farmworkers who are landless, regardless of tenurial arrangement, who benefited from land redistribution, including alternative arrangements to physical distribution, such as production/profit sharing, labor administration, and distribution of shares of stock allowing beneficiaries to receive a just share of the fruits.
It is five percent (5%) of the 2007 surplus of specified government-owned/controlled corporations and government financial institutions (including PAGCOR, PCSO, SSS, GSIS) as mandated by Administrative Order No. 225-A, series of 2008, plus penalties collected from banking institutions for noncompliance and undercompliance under the Act.
Loans to finance agricultural production; promotion of agribusiness and exports; acquisition of work animals, equipment/machinery, seeds, fertilizers, poultry, livestock, feeds; acquisition of authorized agrarian reform lands; construction/acquisition/repair of production, processing, storage, and marketing facilities; and efficient merchandising of agricultural/fishery commodities stored or processed by those facilities in domestic and foreign commerce.
The beneficiaries listed in Section 5 of the Act, or cooperatives/associations in good standing of those beneficiaries, regardless of capitalization, based on project feasibility, paying capacity, estimated production, and/or securities and other assets they can provide or acquire from loan proceeds.
They must set aside at least twenty-five percent (25%) of total loanable funds for agriculture and fisheries credit in general, of which at least ten percent (10%) of the loanable funds must be available for agrarian reform beneficiaries.
As funds generated from the date of effectivity of the Act.
A joint review by the DA, DAR, and BSP after three (3) years of implementation to determine whether the law has been effective in accomplishing its goals, with findings submitted to Congress.
Within ninety (90) days after the approval of the Act.
Fifteen (15) days after publication in a newspaper of general circulation in the Philippines.
Examples include: (1) investing in DBP/LBP bonds and/or opening special deposit accounts (SDAs) with accredited rural financial institutions for exclusive on-lending to the agri-agra sector; (2) rediscounting eligible paper with universal and commercial banks including local branches of foreign banks, provided the paper covers agri-agra credits and guarantees from QUEDANCOR and/or PCIC; (3) lending for construction/upgrading of infrastructure benefiting the agri-agra sector (farm-to-market roads, post-harvest facilities, etc.); (4) investing in preferred shares of rural financial institutions or wholesale lending to accredited rural financial institutions; (5) investing in shares of stock of QUEDANCOR and PCIC; or (6) loans/investments under AFMA/AMCFP.
No. The rediscounted paper “shall no longer be eligible as compliance on the part of the originating bank.”
Loanable funds channeled as compliance under that subsection shall not be counted as compliance under the other enumerated subsections (b), (c), (d), (e), and (f), even if later used by conduit banks in similar activities.
The BSP must furnish reports on compliance with the mandatory credit allocation to the DA, DAR, and Congress on a yearly basis.
Administrative sanctions and other penalties computed at one-half of one percent (0.5%) of noncompliance and undercompliance, directed to the development of the agri-agra sector.
Ninety percent (90%) goes to the AGFP and the PCIC according to the needs of the agri-agra sector as provided in the implementing rules and regulations; the remaining ten percent (10%) is given to the BSP for administrative expenses.
Presidential Decree No. 717; the second paragraph under Section 8 of RA 7900 (High-Value Crops Development Act of 1995); and Section 9 of RA 7721 (Liberalizing the Entry and Scope of Operations of Foreign Banks in the Philippines), plus any inconsistent laws, decrees, orders, rules, or regulations as provided.