House of Representatives

House approves bill condoning farmers’ unpaid loans from DA, DAR, others

Dwight de Leon

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House approves bill condoning farmers’ unpaid loans from DA, DAR, others

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Proponents say the objective of the measure is to reintegrate farmers with agrarian reform debts into the financial and banking system, allowing them to avail of other credit facilities

MANILA, Philippines – The House of Representatives in the 19th Congress passed on Tuesday, January 31, a bill that seeks to enforce a one-time condonation of farmers’ unpaid interests, penalties, and surcharges from agricultural and agrarian loans.

Qualified beneficiaries are those with cases involving force majeure or market aberration, and have paid at least 5% of the loan principal by the time of condonation.

Proponents said the objective of House Bill (HB) No. 5702 is to reintegrate farmers with agrarian reform debts into the financial and banking system, allowing them to avail of other credit facilities.

The condonation program includes:

  • Agricultural and agrarian reform credit secured through the Credit Assistance Program–Program Beneficiaries Development of the Department of Agrarian Reform (DAR)
  • Agricultural and agrarian reform credit secured through the terminated credit program schemes of the DAR, such as the Dutch Rural Development Assistance Program, DAR Direct Lending Financing Program, DAR Special Projects Officer Direct, and the SPO Window Ill Financing Program for Agrarian Reform Beneficiaries of the DAR and the Development Bank of the Philippines
  • Loans secured under the Resettlement Loan Assistance Program of the DAR for individual agrarian reform beneficiaries
  • Agricultural credit secured through the High Yield Crop Loan Assistance Program of the Department of Agriculture
  • Agricultural credit secured through the Microfinance Program for Small Farmers and Fisherfolk and the Household of the People’s Credit and Finance Corporation
  • Loans secured under the Cooperative Development Loan Fund of the Cooperative Development Authority
  • Loans secured under the Farmers Level Grain Center of the National Food Authority
  • Loans secured under the Comprehensive Agrarian Reform Program–Barangay Marketing Center and all agri-credit guarantee programs of Quedan and Rural Credit Guarantee Corporation

HB 5702 was introduced by representatives Felimon Espares, Arnie Teves, Solomon Chungalao, Francisco Paolo Ortega V, Linabelle Ruth Villarica, Allen Jesse Mangaoang, Tonton Kho, Angelo Marcos Barba, Joel Sacdalan, Tsuyoshi Anthony Horibata, Robert Raymund Estrella, Jaime Eduardo Marc Cojuangco, Mohamad Khalid Dimaporo, and Kristine Singson-Meehan.

A total of 271 lawmakers voted in favor of the bill, with no opposition and abstentions.

The measure’s passage came a month after the House approved HB 6336, which seeks to condone agrarian reform beneficiaries’ unpaid amortizations and interests, and exempt them from paying estate tax on agricultural lands awarded under the Comprehensive Agrarian Reform Program.

Four similar bills in the Senate – filed by senators Chiz Escudero, Imee Marcos, Bong Revilla, and Joel Villanueva – are still pending at the committee level.

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– Rappler.com

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Dwight de Leon

Dwight de Leon is a multimedia reporter who covers President Ferdinand Marcos Jr., the Malacañang, and the Commission on Elections for Rappler.