Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5081

Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos

EXPLANATORY NOTE

During the State of the Nation Address, the President criticized and shared
that the Landbank of the Philippines (Landbank), a bank created to cater to the
agriculture and farming sector, has been acting just like any other commercial
banks. It has gone astray from the purpose it was created and has allegedly
focused on earning profits rather than helping the public.

At the same time, according to Finance Secretary Carlos Dominguez,
Landbank has been doing its best to comply with its mandate to help the Filipino
farmers and fishermen. Also, based on the data held by the Bangko Sentral ng
Pilipinas, Landbank is the only bank compliant with Republic Act No. 10000
otherwise known as the Agri-Agra Law. With this, there is a need to amend the law
to further strengthen Landbank in its mandate to provide financial support to the
agriculture and fisheries sector. Also, more banks should be able to comply with
the loan percentages provided in the Agri-Agra Law.

The State recognizes the need to an equal access to opportunities under and
environment of sustained growth and expanding productivity of our citizens as keys
to raising the quality of life for all in the country. As such, the State shall promote
rural development by further enhancing access of the rural agricultural sector to
financial services and programs that increase market efficiency and promote
modernization in the rural agricultural sector.

It is for these foregoing premises that approval of this bill is earnestly
sought.

D C. DELOS SANTOS
Representative, Ang Probinsyano Party List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, __5081

Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos

AN ACT
AMENDING REPUBLIC ACT NO. 10000 OTHERWISE KNOWN AS THE AGRI-
AGRA REFORM CREDIT ACT OF 2009

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 6 of Republic Act No. 10000, otherwise known as the
Agria-Agra Reform Credit Act of 2009 is hereby amended to read as follows:

“Section 6. Credit Quota. — All banking institutions, whether government or
private, shall set aside at least twenty-five percent (25%) of their total
loanable funds for agriculture and fisheries credit in general where fifteen

cent (15%) of the loanable funds shall be made available to projects
directly and indirectly related to the agriculture and_fisheries sector.
Provided, however, That before approval of such projects, these shall_be

reviewed by the De; ent of Agriculture (DA), the De] ent of Agrarian
Reform (DAR) to determine if such project is beneficial to the agriculture and
fisheries sector.

Ten percent (10%) of the loanable funds shall be made available for agrarian
reform beneficiaries mentioned in Section 5 hereof; Provided, however, That
total loanable funds as used in this section shall refer to funds generated
from the date of effectivity of this Act; Provided, further, That the twenty-five
percent (25%) credit quota is subject to a joint review by the DA, the DAR
and the BSP after three (3) years of implementation to determine whether the
law has been effective in accomplishing its goals. The findings shall be
submitted to Congress.

SECTION 2. Repealing Clause. — All laws, decrees, executive orders, and
proclamations, rules and regulations or parts thereof inconsistent with this Act, are
hereby amended or modified accordingly.

SECTION 3. Separability Clause. - If any provision of this Act is held invalid
or unconstitutional, the remaining parts or provisions not affected shall remain in
full force and effect.

SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.


auewene

Approved,