Estrella, Borromeo approve IRR on agrarian debt moratorium

Agrarian Reform Secretary Conrado M. Estrella III and Land Bank of the Philippines (LANDBANK) President and CEO Cecilia C. Borromeo jointly sign the 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.

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, on Wednesday, 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).

Land Bank of the Philippines (LANDBANK) President and CEO Cecilia C. Borromeo and Agrarian Reform Secretary Conrado M. Estrella III hold the signed IRR for EO No. 4 Series of 2022, which declares a moratorium on the payment of land amortization and interests for agrarian reform beneficiaries.

“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 the 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.

Estrella, Borromeo inaprubahan ang IRR para sa agrarian debt moratorium

Alinsunod sa direktiba ni Pangulong Ferdinand R. Marcos, Jr., nilagdaan nuong Miyerkules, Setyembre 28, 2022, nina Agrarian Reform Secretary Conrado M. Estrella III at Land Bank of the Philippines (LANDBANK) President at CEO Cecilia C. Borromeo, ang Joint Administrative Order na nagpapatibay ng implementing rules and regulations (IRR) para sa Executive Order No. 4 Series of 202, na nagdeklara ng moratorium sa pagbabayad ng land amortization at interes ng mga benepisyaryo ng repormang agraryo.

Nilagdaan ng Pangulo noong Setyembre 13, 2022, ang EO na may titulong, “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,” na nagsasaad ng isang taong moratorium sa pagbabayad ng utang ng Agrarian Reform Beneficiaries (ARBs) na tumanggap ng lupang pang agrikultura sa ilalim ng Comprehensive Agrarian Reform Program (CARP).

"Katungkulan natin sa pamahalaan na unahin ang mga magsasaka, hindi lamang dahil sila ang bumubuhay sa atin, kung hindi dahil sila ang magbabangon muli ng ating ekonomiya," ani Pangulong Marcos.

Nasa ilalim ng IRR na nilagdaan ng Department of Agrarian Reform (DAR) at ng LANDBANK na napapaloob sa isang taong moratorium ang pagbabayad ng Principal Value at ang Annual Interest Due na dapat ay babayaran ng ARBs.

"Ang isang taong moratorium ay magbibigay ng kinakailangang oras para maipasa ng Kongreso ang batas na kumukunsinti sa umiiral na agrarian reform loan para sa kasalukuyang ARBs at libreng pamamahagi ng lupa para sa mga susunod na benepisyaryo," ani Estrella.

Pangunahing sinasaklaw nito ang pinansyal na obligasyon na bayaran ang kabuuang halaga ng lupa sa ilalim ng Presidential Decree No. 27, kabilang ang interest rate na anim na porsyento (6%) kada taon gaya ng itinatadhana sa ilalim ng Seksyon 6 ng E.O. Blg. 228; at ang pinansyal na obligasyon na bayaran ang prinsipal na halaga kabilang ang anim na porsyento (6%) na taunang interes ng tatlumpung (30) taong amortisasyon sa lupa ng mga ARB sa ilalim ng Seksyon 26 ng RA No. 6657, gaya ng sinusugan.

"Sinusuportahan ng LANDBANK ang makasaysayang hakbangin na ito. Magbibigay tayo ng agarang tulong pinansyal sa mga ARB sa buong bansa, at magbubunga ng positibong epekto tungo sa pagtiyak ng food security sa bansa,” ani LANDBANK President Borromeo.

Ang LANDBANK ang inatasan ng pamahalaan upang mangolekta sa mga amortisasyon ng lupa mula sa mga ARB, alinsunod sa mandato nito sa ilalim ng CARP. Ang lahat ng koleksyon ay ipinadadala ng Bangko sa Bureau of the Treasury (BTr) bilang bahagi ng kita ng Pambansang Pamahalaan.

Ang DAR-LANDBANK Joint Administrative Order ay sumasaklaw sa paraan ng pagtukoy sa mga benepisyaryo na kwalipikadong makakuha ng isang taong suspensiyon sa pagbabayad, kasama din ang pag dokumento sa epekto ng moratorium sa pagpapahusay ng produksyon at kita ng mga ARB.

Nauna nang inatasan ng EO No. 4 ang DAR at LANDBANK na magkasamang magsumite sa Tanggapan ng Pangulo, sa pamamagitan ng Office of the Executive Secretary, ng komprehensibong ulat sa pagpapatupad ng naturang Executive Order, kabilang ang bilang ng mga ARB na aktwal na natulungan at ang epekto ng moratorium, bukod sa iba pa.

Ang DAR-LANDBANK Joint Administrative Order ay magkakabisa matapos ito mailathala sa Opisyal na Gazette o sa isang pahayagan na may pangkalahatang sirkulasyon.