E IG IIT E E M 11 COiNGRESS OE THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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qI i.’f “'■•'Lrrtnrj*
SENATE
"1 -8  P2 33
Introduced by Senator Ralph G. Recto
AN ACT
CONDONING ALL UNPAID AMORTIZATIONS, INTERESTS, PENALTIES OR 
SURCHARGES ON LOANS SECURED UNDER THE COMPREHENSIVE AGRARIAN 
REEORM PROGRAM AND FOR OTHER PURPOSES
Explanatory Note
Financing the Comprehensive Agrarian Reform Program (CARP) is one of the major 
challenges in implementing land reform in the country. Apart from meager appropriations for 
agrarian refonn support services, the program also suffers from low repayment rates from 
agrarian refonn beneficiaries. The Senate Economic Planning Office (SEPO) estimated that from 
1987 to 2004, only P2.5 billion of the projected P14.3 billion collectible land amortization 
payments was actually collected1. A Philippine Institute for Development Studies (PIDS) study 
revealed that CARP loan collection performance by Land Bank of the Philippines (LBP) as of 
March 2015 is about 51.55% for amortization and interest payments2.
The cause for the low collection rate is two-fold. On the one hand, an administrative 
system to collect loan proceeds from farmer-beneficiaries was not fully established due to its 
prohibitive administrative costs3. On the other hand, the high cost of agricultural inputs, low 
farm outputs, and the onset of devastating meteorological calamities, among others, have left the 
agrarian refonn beneficiaries bereft of any means to pay for the loan they have secured under 
CARP.
This bill seeks to accomplish several undertakings. First, it seeks to further increase the 
productivity of agrarian refonn beneficiaries by providing them additional financial resources 
through the condonation of their annual amortization and interests, including penalties or 
surcharges, if any. Second, it strives to reduce the administrative cost of implementing the 
agrarian refonn program. Ultimately, it endeavors to achieve the original intent of the agrarian 
reform program, which is to improve the lives of fanners, reduce rural poverty and accelerate 
rural development. Such intei-vention is founded on the principles of the agrarian refonn law, 
which seek to uphold the welfare of landless fanners and fannworkers with the goal of 
promoting social justice, sound rural development and industrialization.
To sustain the gains of the agrarian refonn program, the swift passage of this measure is 
earnestly sought.
/mdg
fonn in Ihc^liilippincs. Policy Brief. Pasay
Senate Economic Planning Office (2008, July). Broadening and Reinforcing the Benefits of Land I 
City: Senate of the Philippines.
2 Ballesteros, M. M., Ancheta, J. And Ramos, T. (2017). The Comprehensive Agrarian Refonn Program alter 30 Years: Accomplishments and
Forward Options. Discussion Paper Series No. 2017-34. Quezon City: Philippine Institute for Development Studies
3 Arlanza, R. S., et. al. (2006 April). The Comprehensive Agrarian Refonn Program: Scenarios and Options for Future Development. Quezon
City: Department of Agrarian Reform.
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EIGHTEENTH CONGRESS OE THE 
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REPUBLIC OF THE PHILIPI’INES 
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First Regular Session 
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SENATE
s. No. 
268
ot! € -  Lfirtnip
’IL-8 P2:34
Introduced by Senator Ralph G. Recto
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AN AC r
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 House oj 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 The agrarian reform beneficiaries shall be deemed as rightful owners of the lands 
awarded to them upon the effectivity of this Act.
Sec. 2. Implementing Rules and Regulations. -  Within thirty (30) days from the 
effectivity of this Act, the Department of Agrarian Refonn (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.
Se c. 3. Repealing Clause. -  Section 26 of Republic Act No. 6657, otherwise known as 
the '''Comprehensive Agrarian Reform Law of 1988," as amended by Republic Act No. 9700 is 
hereby repealed. All laws, decrees, orders, rules and regulations or parts thereof inconsistent with 
any of the provisions of this Act are hereby repealed, amended or modified accordingly.
Se c. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,
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