Trading Century
  • Trading News
  • Economy
  • Editor’s Pick
  • Finance
  • Investing
  • Politics
  • Stock
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Email Whitelisting
  • Contact
Subscribe
Trading Century
Trading Century
  • Trading News
  • Economy
  • Editor’s Pick
  • Finance
  • Investing
  • Politics
  • Stock
  • Politics
  • Stock
  • Trading News

Senate ratifies bicam report on agri-agra amendments

  • May 23, 2022
PHILSTAR

THE SENATE on Monday ratified the consolidated version of a bill amending Republic Act 10000 or the Agri-Agra Reform Credit Act of 2009, which recognized more activities for bank financing that allow institutions to meet the agricultural lending quota.

The bicameral report reconciles Senate Bill 2494 and House Bill 6134. The bill, certified as urgent by President Rodrigo R. Duterte, is known as “An Act Strengthening the Financing System, including Capacity-Building and Organization, for Agriculture, Fisheries, and Rural Development in the Philippines.”

“I am pleased to report on the successful outcome of the bicameral conference,” said Senator Cynthia A. Villar, who chairs the Senate Agriculture, Food and Agrarian Reform committee and was the primary sponsor of the bill, in plenary session.

“The conference committee decided to use the Senate version as the working draft of the discussion,” she added.

According to the report accompanying the consolidated bill, a new paragraph was added to the declaration of policy highlighting the importance of designing and implementing capacity-building programs to develop competencies of farmers, fisherfolk, and agrarian reform beneficiaries.

The objective of the capacity-building program is to get agricultural workers to operate productive, profitable and viable ventures while enhancing their ability to pay when they tap formal financing channels.

Under the proposed law, administrative sanctions and other penalties will be computed at one-half percent or at rates prescribed by the BSP Monetary Board. A revision was made to the penalty clause, where instead of 10%, 5% of penalties collected will be retained by the Bangko Sentral ng Pilipinas (BSP) to cover administrative expenses.

“Twenty percent shall be allocated as a fund for agricultural- and fishery-related organizational-, capacity-, and institution-building programs and activities to be implemented equally by the LBP (Land Bank of the Philippines) and DBP (Development Bank of the Philippines),” Ms. Villar said.

According to the bill, a portion of the Special Fund managed by the LBP and DBP will be used to fund capacity-building programs developing the knowledge, skills and income of agricultural stakeholders.

If signed into law, all banking institutions, except newly established banks, must set aside at least 25% of their total loanable funds for agricultural and fisheries-related sectors after they have been operating for five years.

Banks will be expected to design and offer financial products and services that suit the specific requirements of agricultural clients appropriate to their cash flows and production cycles. 

The bill also includes special lending arrangements for agribusiness enterprises with qualified agricultural borrowers and agricultural value chain financing, which cover production, distribution, manufacturing, and processing of agricultural products.

Banks can comply with the credit quota by lending to rural community beneficiaries to finance agricultural and fishery-related activities, as well as by investing in securities where the proceeds are meant to finance these activities. 

Other modes of compliance include opening deposit accounts with or investing in fixed-term deposit products of rural financial institutions (RFI), investing directly in RFIs, lending for the construction and upgrade of agriculture infrastructure, extending credit to agri-businesses that have commodity supply-chain arrangements with rural community beneficiaries, as well as engaging in sustainable finance.  

The BSP may also identify other activities that will qualify as part of the quota and is authorized to monitor and provide reports on the banks’ compliance with the measure.

The House has also ratified the bicameral report and the measure will be sent to the Palace for signing by President Rodrigo R. Duterte. — Alyssa Nicole O. Tan

Previous Article
  • Politics
  • Stock
  • Trading News

Senate passes Bulacan Airport ecozone authority bill on second reading

  • May 23, 2022
View Post
Next Article
  • Politics
  • Stock
  • Trading News

Peso down on oil prices, hawkish Fed

  • May 23, 2022
View Post
You May Also Like
View Post
  • Trading News

Waller Offers Common Sense View on Financial Risks of Climate Change

  • May 29, 2023
View Post
  • Trading News

Ga. Reps Slice Possible Lifeline for Kids in Failing Schools

  • April 5, 2023
View Post
  • Trading News

Silicon Valley Bank: Mismanagement Is Not an Excuse for Inefficient Regulation

  • April 3, 2023
View Post
  • Trading News

Fetterman released from inpatient treatment for depression

  • April 1, 2023
View Post
  • Trading News

Fetterman released from inpatient treatment for depression

  • April 1, 2023
View Post
  • Trading News

Fetterman released from inpatient treatment for depression

  • April 1, 2023
View Post
  • Trading News

Fetterman released from inpatient treatment for depression

  • April 1, 2023
View Post
  • Trading News

Fetterman released from inpatient treatment for depression

  • April 1, 2023
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.


    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



    If you want to delve into the USA business updates and investors daily routine,
    go to our partner project Daily Business Investor.

    TradingCentury.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.

    Copyright © 2023 Trading Century. All Rights Reserved.

    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    • About Us
    • Privacy Policy
    • Terms & Conditions
    • Email Whitelisting
    • Contact
    Trading Century
    Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.

    Input your search keywords and press Enter.