Villar eyes bill seeking to expand banks' loan quota for agriculture

Senator Cynthia Villar on Wednesday said she is planning to file a measure that will seek to amend the Agri-Agra Reform Law, which compels banks to set aside loan funds for the farming sector.

During the European Chamber of Commerce of the Philippines (ECCP) Sustainable Agriculture forum in Pasay City, Villar, who chairs the Senate committee on Agriculture and Food, said the amendment to the Agri-Agra law will be among the priority measures for the 18th Congress.

"I will also file... the amendment of the Agri-Agra law, which (at present) requires 25% of the loanable funds of all private banks to go to agriculture [sector]," the senator said.

Under Republic Act No. 10000 or the Agri-Agra Reform Credit Act, banks are mandated to allocate 25% of their loanable funds for the agriculture industry, 15% of which should be for agriculture-related projects and 10% for agrarian reform beneficiaries.

"I think the agricultural loans are performing much better than the loans to DAR (Department of Agrarian Reform) beneficiaries so we have to look into it," Villar said.

RA 1000 also allows banks to invest in government-listed priority programs a portion of their funds for investment for loans for farmers, fisher folk, and other agriculture-based workers.

Duterte chides Land Bank

During his 4th State of the Nation Address (SONA) last Monday, President Rodrigo Duterte called out the state-owned Land Bank of the Philippines for having turned into a “commercial bank” when it should be prioritizing the financing of agriculture enterprises.

“That's why itong (this) Land Bank na ito, 'pag hindi ito na ... You know, you are called Land Bank but you are now the number one commercial bank in the Philippines,” Duterte said.

“What the heck is happening to you? You are supposed to finance agricultural enterprises and endeavors. Bakit wala (Why aren’t you doing it)? Bakit —why can't you just buy a few wagons or whatever? Go to the countryside and ask the people if there are cooperatives, tulungan ninyo (help them) to form one,” he added. —LBG, GMA News