Senate passes credit facility bill

THE SENATE has passed a bill to create a credit facility for agrarian reform beneficiaries, with the measure now ready for approval in the bicameral level once Congress resumes sessions on May.

The Senate on Monday approved on third and final reading an amended version of House Bill No. 3785, otherwise known as the Agricultural Land Reform Code, with 16 affirmative votes and no opposition.

The House of Representative passed the original bill in February 2014.

Senator Sergio R. Osmeña III, sponsor of the bill and chairman of the Senate Committee on Banks, Financial Institutions, and Currencies, said that the measure will mandate the Land Bank of the Philippines (Landbank) to allocate 5% of its regular loan portfolio to qualified agrarian reform beneficiaries.

The financial assistance is expected to benefit small farmers and fisherfolk, curbing the downward spiral of agriculture’s the contribution to the economy.

“Agriculture, fisheries, and forestry income as a share of gross domestic product (GDP) has declined continuously from 20% in 1972 to 10% in 2014,” Mr. Osmeña said.

“By granting our farmers, fisherfolk, and agrarian reform beneficiaries improved access to credit, we hope to stem the decline in agricultural productivity as a share of GDP, and uplift the standard of living of our countrymen,” he further said.

According to Landbank, its gross loan portfolio stood at P441 billion for January- September 2015, which is a 21% increase from the P362 billion it recorded in the same period of 2014.

Should the bill be made law, common and preferred stock share will also be offered to agrarian reform beneficiaries, small farmers, and fisherfolk, and will be coursed through the different agriculture-based organizations, cooperatives, and federations in the country. —