Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos
EXPLANATORY NOTE
To this day, a huge chunk of the amortizations under the Comprehensive
Agrarian Reform Program (CARP) remain unpaid. A study conducted by the
Philippine Institute for Development Studies (PIDS) revealed the Land Bank
of the Philippines (LBP) has only collected about 51.55% of amortizations
and interest payments as of March 2015.
On one hand, it is largely attributed to the inadequate administrative system
for
loan
collection
which
resulted
as
a
consequence
of
prohibitive
administrative
costs.
On
the
other
hand,
we
have
agrarian
reform
beneficiaries who are incapable of paying their existing loans under the
program due to low farm outputs despite the high costs of agricultural
inputs. Their outstanding loans under the CARP impose an additional
financial burden on the farmers, ultimately eating away at what they could
have utilized as farming capital.
On September 13, 2022, President Ferdinand “Bongbong” Marcos Jr. signed
an executive order placing a one-year moratorium on the amortization and
interest payments of agrarian reform beneficiaries.1 The moratorium was
intended to be a way to prepare for the President’s promise — for Congress
to pass a law that will condone outstanding loans of ARBs with unpaid
amortizations and their corresponding interests.
This bill seeks to set that promise in stone and to finally lift the weight off
our farmers’ shoulders so that they can finally reap the benefits of their
hard-earned labor while owning the lands they till.
It is for the foregoing premises that the approval of this Bill is
earnestly sought.
1https://newsinfo.inquirer.net/1663239/marcos-orders-1-year-moratorium-on-payments-of-agrarian-reform-be
neficiaries
September 23, 2022
2:17 pm
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ALFRED C. DELOS SANTOS
Representative, Ang Probinsyano Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos
AN ACT
CONDONING ALL UNPAID AMORTIZATIONS, INTERESTS, PENALTIES,
OR SURCHARGES ON LOANS SECURED UNDER THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:
SECTION 1. Condonation of Unpaid Amortizations, Interest Payments,
Penalties, or Surcharges. – All unpaid amortizations and interests, including
penalties
or
surcharges,
if
any,
due
from
loans
secured
under
the
Comprehensive Agrarian Reform Program (CARP) are hereby condoned by
the Government, thereby relieving all farmer-beneficiaries from the payment
thereof.
SECTION 2. Removal of lien on mortgaged lands. – Immediately upon
effectivity of this Act, the lien in favor of the Land Bank of the Philippines by
way of mortgage shall be removed and the agrarian reform beneficiaries
shall be deemed as rightful owners of the lands awarded to them upon the
effectivity of this Act.
SECTION 3. Implementing Rules and Regulations. – Within thirty (30)
days from the effectivity of this Act, the Department of Agrarian Reform
(DAR), in coordination with the Philippine Agrarian Reform Council (PARC)
and the Land Bank of the Philippines (LBP), shall promulgate the necessary
rules and regulations to effectively implement the provisions of this Act.
SECTION
4.
Repealing
Clause.
–
All
laws,
executive
orders,
presidential decrees or issuances, letters of instruction, administrative
orders, rules, and regulations contrary to or inconsistent with the provisions
of this Act are hereby repealed, amended, or modified accordingly.
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SECTION 5. Effectivity Clause. – This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in a newspaper of general
circulation.
Approved,