By Billy Begas
The House of Representatives on Tuesday approved on third and final reading the measure providing for restructuring and condonation of unpaid interests, penalties, and surcharges on the loans of farmers, fisherfolks, and agrarian reforms beneficiaries.
The proposed Agrarian and Agricultural Loan Restructuring and Condonation Act (House Bill 5702) was approved with 271 affirmative votes. No one objected to its passage.
Speaker Ferdinand Martin Romualdez said “the proposed law removes a heavy financial burden on their part, as it seeks to write off millions in interests, penalties, and surcharges on their loans. The condonation will be a big relief for our farmers and fisherfolk.”
Romualdez said the bill would give those covered a clean credit record that could enable them to again avail themselves of government credit for production and other farming needs.
The proposal cover loans from the Department of Agrarian Reforms (DAR), the Department of Agriculture (DA), the People’s Credit and Finance Corp. (PCFC), the Cooperative Development Authority, the National Food Authority (NFA), and the Quedan and Rural Credit Guarantee Corp. (Quedancor).
The one-time condonation applies to loans in cases involving force majeure or market aberration and cannot be applied to cases of willful default of a borrower.
It is also limited to borrowers who have paid at least 2% of the principal amount at the time of the application for condonation.
The period for payment of the restricted loan shall be determined according to the financial capacity of the farmers, fisherfolks, and agrarian reform beneficiaries.
