Villar thankful for the new agri-agra law; cites easy loans

FINANCING for farmers and fisherfolk will be expanded as well as reaching the agricultural sector and promoting rural development would be more effective since RA 11901 or the "Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022 is now a law, said Sen. Cynthia A. Villar.

The senator, chairperson of the Senate committee on agriculture and food, is the principal author RA 11901 or the New Agra-Agri Law, which has lapsed into law July 29, 2022.

She thanked Quirino Rep. Junie Cua, her counterpart at the House of Representatives, and then BSP Governor Benjamin Diokno for their efforts in crafting all the new law.

The new law mandates that 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 are expected to offer new financial products and services that suit the specific requirements of agricultural clients appropriate to their cash flows and production cycles.

"They can comply with the credit quota by lending to rural community beneficiaries to finance agricultural and fishery-related activities, said Villar.

Furthermore, she said banks can also invest in securities where the proceeds are meant to finance these activities.

Both the LandBank and the Development Bank of the Philippines shall use their resources to invest, promote digital banking technology, automation, branchless banking and cash agent operations to reach remote barangays and municipalities; use of e-commerce, mobile phone applications to reach the rural public.

They shall continue to promote savings and credit in rural areas to coops, micro financial institutions, retail banks, and rural & thrift banks with minimal interest for wholesale loans.

The new law also removes the distinction between the 10 percent agrarian reform and the 15 percent agricultural credit to provide banks greater flexibility in extending credit to the agriculture and agrarian reform sectors based on their capabilities.

It also calls for special lending arrangements for agribusiness enterprises with qualified agricultural borrowers and agricultural value chain financing.

It expanded the available modes of compliance with requirements to finance the agricultural sector to promote funding for green finance projects, income-generating activities, and public infrastructure projects. This would benefit both the agrarian reform and agricultural sectors.

The old Agri-Agra Credit Act of 2009 required banks to lend 15% of their loan book to the agriculture sector, with a 10% quota set for agrarian reform beneficiaries.

Villar, nagpapasalamat para sa bagong agri-agra law; binanggit ang madaling pautang

PALALAWAKIN ang pautang sa mga magsasaka at mangingisda matapos maging batas ang RA 11901 o ang "Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022," ayon kay Sen. Cynthia A. Villar.

Ipinahayag ni Villar na madali na ring maaabot ang sektor ng agrikultura at mas epektibo nang maisusulong ang kaunlaran sa kanayunan.

Principal author ang senador, chairperson ng Senate committee on agriculture and food, ng RA 11901 o ang bagong Agra-Agri Law, na 'nag-lapse into law" noong July 29, 2022.

Pinasalamatan niya si Quirino Rep. Junie Cua, ang kanyang counterpart sa House of Representatives, at dating BSP Governor Benjamin Diokno sa kanyang pagsisikap na magawa ang naturang batas.

Itinatakda sa bagong batas na dapat maglaan ang lahat ng bangko, maliban na lamang sa mga bagong tatag, ng di bababa sa 25% total loanable funds sa agricultural at fisheries-related sectors kapag 5 taon na silang nag-ooperate.

Inaasahan ding maghandog ang mga bangko ng bagong financial products and services na angkop sa kailangan ng agricultural clients para cash flows and production cycles.

"They can comply with the credit quota by lending to rural community beneficiaries to finance agricultural and fishery-related activities, sabi pa ni Villar.

Ayon kay Villar, puwede ring mamuhunan ang mga bangko sa securities kung saan gagamitin ang kita para pondohan ang mga ganitong aktibidades.

Parehong gagamitin ng Land Bank at Development Bank of the Philippines ang kanilang resources para mamuhunan, isulong ang digital banking technology, automation, branchless banking at cash agent operations upang maabot ang malalayong barangay at munisipalidad, at gamitin ang e-commerce at mobile phone applications sa rural public.

Patuloy nilang isinusulong ang savings at credit sa rural areas para sa coops, micro financial institutions, retail banks at rural at thrift banks na may minimal interest sa wholesale loans.