THE House committee on banks and financial intermediaries on Monday approved a bill seeking to grant banks and other financial institutions tax exemptions and reduced registration and transfer fees on transactions involving the offloading of non-performing assets (NPAs) to cushion the impact of the COVID-19 crisis.
In a video-conference hearing, the committee chaired by panel chair Quirino Rep. Junie Cua approved House Bill No. 6622 or the Philippine Banking Industry Resiliency Act against COVID-19.
NPAs are non-performing loans and real and other properties acquired in settlement of loans and receivables.
“The State recognizes the role of banks and other financial institutions as mobilizers of savings and investments for the country’s growth and development. These financial institutions are main components of the financial system and their continued financial health is critical to the maintenance of financial stability,” the bill said.
House deputy speaker Mujiv Hataman of Basilan said the national government should also focus on strengthening the country’s “food production frontlines” by pouring funds to improve and enhance the agriculture and agribusiness sectors.
Hataman said the government should resume, with a new sense of urgency, the repair and construction of rural infrastructure like irrigation and support to farmers and farm producers, which are needed to boost food production.
The Basilan legislator said strengthening the country’s farms is also the right step to achieve food security and self-sufficiency, as many countries have already imposed export bans or some form of restrictions on some food commodities to protect domestic supply.
Countries such as Albania, Australia, Bangladesh, Colombia and the European Union, among others, have limited the volume of food and other products that can be exported at the onset of the COVID-19 health crisis. In Southeast Asia alone, Vietnam earlier imposed an export ban on rice, but decided to lift the restrictions last April.
“We need to build resiliency against pandemics and multiple disasters. While we’re fortifying our healthcare system, we need also to boost our food production,” he said. “We cannot battle COVID-19 or any other calamity or disaster that will come our way on an empty stomach or on fears of a limited food supply.”
According to data released by the Philippine Statistics Authority (PSA) late last year, more than a quarter of the country’s food supply was imported. Import dependence rose to 29.16 percent in 2018, up from 22.67 percent in 2017 and 22.51 percent in 2016, said the PSA’s Food Balance Sheets for 2016-2018.
