The Land Bank of the Philippines (Landbank) said it will collaborate with the Department of Agrarian Reform (DAR) to expedite the processing of the remaining P43.17 billion principal loans of over 385,000 agrarian reform beneficiaries (ARBs).
Landbank said this forms part of efforts to implement the new law that frees ARBs nationwide from agrarian debts.
Under the New Agrarian Emancipation Act signed by President Ferdinand Marcos Jr. last week, the national government is writing off land amortizations managed by Landbank amounting to P57.74 billion as of end-June 2023 to relieve over 649,000 ARBs tilling 1.17 million hectares of land from debt.
Of the P57.74 billion, the national government will condone outright P14.56 billion in principal loans of over 263,000 ARBs upon the effectivity of the law.
“We are proud to be part of this landmark initiative of the Marcos Administration to free farmers from debt and help them start anew. Land Bank will likewise continue to pour investments and extend support initiatives for farmers nationwide to boost their productivity and income,” Lynette Ortiz, Landbank president and chief executive officer, said in a statement.
Landbank said the New Agrarian Emancipation Act condones all loans, including interests, penalties and surcharges, incurred by ARBs from land awarded to them under the Tenant Emancipation Decree issued in 1972, Comprehensive Agrarian Reform Law of 1988 and the Act strengthening the Comprehensive Agrarian Reform Program and extending the acquisition and distribution of agricultural lands issued in 2009.
However, DAR still needs to issue the implementing rules and regulations of the new law, in coordination with the Presidential Agrarian Reform Council Executive Committee and the technical expertise of Landbank, within 60 days from the issuance of the policy.
So far, Landbank has extended P2.7 billion in loans to 2,356 individual ARBs and 469 ARB cooperatives and farmers’ associations nationwide.
Apart from credit assistance, the bank said it also provides financial literacy and capability-building seminars to make sure borrowers are equipped with basic financial knowledge to manage their finances and boost their income.
