Land Bank of the Philippines and the Department of Agrarian Reform signed Wednesday a joint administrative order providing the implementing rules and regulations on Executive Order No. 4 Series of 2022, or the moratorium on the payment of land amortization and interests for agrarian reform beneficiaries.
The EO, signed by President Ferdinand Marcos Jr. on Sept. 13, calls for a one-year moratorium on loan payments by ARBs.
“It is our duty in the government to prioritize the farmers, not only because they are the ones who keep us alive, but because they will make our economy rise again,” said LandBank president and chief executive Cecilia Borromeo.
The IRR specified that the one-year moratorium covers the payment of the principal value and the annual interest due and payable by the ARBs.
“The one-year moratorium period will provide the needed time for Congress to pass the law condoning the existing agrarian reform loans for the current ARBs and free land distribution for future beneficiaries,” said DAR secretary Conrado Estrella III.
The moratorium covers the financial obligation to pay the total cost of the land under Presidential Decree No. 27, including interest at the rate of 6 percent per annum as provided under Section 6 of E.O. No. 228.
It also covers the financial obligation to pay the principal value including the 6 percent annual interest of the 30-year land amortization of the ARBs under Section 26 of RA No. 6657, as amended.
“LandBank supports this historic initiative which is now taking off. We will provide immediate financial relief to ARBs nationwide and yield positive results towards ensuring food security in the country,” Borromeo said.
LandBank serves as the collection agent of the national government for land amortizations from ARBs, pursuant to its mandate as the financial intermediary of the Comprehensive Agrarian Reform Program. All collections are remitted to the Bureau of the Treasury.
The JAO will assist in the identification of beneficiaries qualified to avail of the one-year payment suspension.