President Marcos Jr. has ordered a one-year moratorium on the annual amortization and interest payments by agrarian reform beneficiaries (ARBs) on agricultural lands distributed under the Comprehensive Agrarian Reform Program (CARP).
The Office of the President in a social media post yesterday said Marcos has signed an executive order freezing the payment on amortization and interest payments for one year to allow ARBs to use their money for farm inputs to develop their farms, maximize their production, or as starting capital for any business enterprises they may consider venturing into, among others.
Department of Agrarian Reform (DAR) Secretary Conrado Estrella III, said in a press release the “one-year moratorium and condonation of farmers’ loan payments will lead to the freedom of farmers from debts.”
The department said the issuance of the EO will also pave the way for the fulfillment of the Marcos administration’s commitment, which is for Congress to pass a law that will condone the loans of ARBs with unpaid amortization and interest.
The President had said the condonation would amount to about P58.125 billion and benefit around 654,000 ARBs and involve 1.18 million hectares of awarded lands.
In his first State of the Nation Address (SONA) in July, Marcos Jr. ordered the one-year moratorium on the farmers’ loans to free them from their debts and allow them to focus on maximizing their capacity to produce and eventually help propel the growth of the economy.
He also asked congress to pass the law on the condonation of the ARBs’ loans.
Section 26 of the Republic Act 6657, the Comprehensive Agrarian Reform Law, states that “lands awarded pursuant to the law shall be paid for by the beneficiaries to the Land Bank of the Philippines in 30 annual amortizations at six percent interest per annum.”
