32.2 C
Cagayan de Oro
Saturday, May 25, 2024
HomeAdvertisementsEstrella, Borromeo approve IRR on agrarian debt moratorium

Estrella, Borromeo approve IRR on agrarian debt moratorium

In compliance with the directive of President Ferdinand R. Marcos, Jr., Agrarian Reform Secretary Conrado M. Estrella III and Land Bank of the Philippines (LANDBANK) President and CEO Cecilia C. Borromeo, today, September 28, 2022, signed the Joint Administrative Order providing the implementing rules and regulations (IRR) for Executive Order No. 4 Series of 2022, which declares a moratorium on the payment of land amortization and interests for agrarian reform beneficiaries.

Signed by the President on September 13, 2022, the EO entitled, “Directing the Implementation of a Moratorium on the Payment of the Principal Obligation and Interest of the Amortization Due and Payable by Agrarian Reform Beneficiaries,” calls for a one- year moratorium on loan payments of Agrarian Reform Beneficiaries (ARBs) who received agricultural land under the Comprehensive Agrarian Reform Program (CARP).

“It is our duty in the government to prioritize the farmers, not only because they are the ones who keep us alive, but because they will make our economy rise again,” the President said.

The IRR signed by the Department of Agrarian Reform (DAR) and LANDBANK specifies that the one-year moratorium covers the payment of the Principal Value and the Annual Interest Due and payable by the ARBs.

“The one-year moratorium period will provide the needed time for Congress to pass the law condoning the existing agrarian reform loans for the current ARBs and free land distribution for future beneficiaries,” Estrella said.

It primarily covers the financial obligation to pay the total cost of the land under Presidential Decree No. 27, including interest at the rate of six percent (6%) per annum as provided under Section 6 of E.O. No. 228; and the financial obligation to pay the principal value including the six percent (6%) annual interest of the thirty (30)-year land amortization of the ARBs under Section 26 of RA No. 6657, as amended.

“LANDBANK supports this historic initiative which is now taking off. We will provide immediate financial relief to ARBs nationwide, and yield positive results towards ensuring food security in the country,” said LANDBANK President Borromeo.

LANDBANK serves as the collection agent of the National Government for land amortizations from ARBs, pursuant to its mandate as the financial intermediary of the CARP. All collections are remitted by the Bank to the Bureau of the Treasury (BTr) as part of the revenue of the National Government.

The DAR-LANDBANK Joint Administrative Order covers the identification of beneficiaries qualified to avail of the one-year payment suspension, with the impact of the initiative to enhance the productivity and profitability of the ARBs duly documented and promoted.

EO No. 4 directs the DAR and LANDBANK to jointly submit to the Office of the President, through the Office of the Executive Secretary, a comprehensive report on the implementation of this Order, including data on the number of ARBs actually covered and impact of the moratorium, among others.

The DAR-LANDBANK Joint Administrative Order shall take effect upon publication in the Official Gazette or in a newspaper of general circulation.



Most Popular

Recent Comments