Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City \2

17% Congress
Second Regular Session

House Bill No 6734

Introduced by Representative MICHAEL L. ROMERO

EXPLANATORY NOTE

The Land Bank of the Philippines (LBP) is a government financial institution
with a social mandate of promoting countryside development, prioritizing the sector of
small farmers and fisherfolks as its beneficiaries. On the other hand, Republic Act No.
10000, otherwise known as an "Act Providing for an Agriculture and Agrarian Reform
Credit and Financing System Through Banking Institutions" or the "Agri-Agra Reform Credit
Act of 2009" provides a requirement to all banking institutions, government or private,
to set aside at least 25% of their total loanable funds for agriculture and fisheries credit
in general. Based on this credit quota requirement, LBP is positioned in the same way as
the other banking institutions that are merely required to set aside 25% of their loanable
account for agriculture and fisheries, thereby negating LBP’s above-stated social
mandate.

Thus, and in order to give credence to LBP’s social mandate and to further the
improvement and upliftment of the lives of our farmers and fisherfolks in line with the
thrust of the government to eradicate poverty in the countryside, there is a need to
increase the abovementioned credit quota applicable to LBP to at least sixty percent
(60%) under the Agri-Agra Reform Credit Act of 2009.

Approypl of this bill is therefore sought.

MICHAEL) ROMERO
Représentative, PACMAN Partylist

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17% Congress
Second Regular Session

House Bill No. 6734

Introduced by Representative MICHAEL L. ROMERO

AN ACT
AMENDING SECTION 6 OF REPUBLIC ACT NO 10000, OTHERWISE
KNOWN AS THE “AGRI-AGRA REFORM CREDIT ACT OF 2009”
Be it enacted by the Senate and the House of Representatives of the Philippines in

Congress assembled:

SECTION 1. Article II, Section 6 of Republic Act No. 10000 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, of which at least ten percent
(10%) of the loanable funds shall be made available for agrarian reform
beneficiaries mentioned in Section 5 hereof: provided that in case of the Land
Bank of the Philippines created under Republic Act No. 3844, otherwise known
as the “Agricultural Land Reform Code” as amended, the amount to be set aside for
fisheries and credit in general shall be at least sixty percent (60%); Provided,

however, That total loanable funds as used in the section shall refer to funds


generated from the date of effectivity of this Act: Provided, nevertheless, That the
twenty-five percent (25%) or, in the case of Land Bank of the Philippines, sixty
percent (60%) credit quota is subject to a joint review by the Department of
Agriculture (DA), the Department of Agriculture Reform (DAR) and the Bangko
Sentral ng Pilipinas (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. EFFECTIVITY - This Act shall take effect fifteen (15) days from the date
of its publication in the Official Gazette or in at least two (2) newspapers of general

circulation.

Approved.