BSP wants to broaden list of investments eligible under Agri-Agra law

The Bangko Sentral ng Pilipinas (BSP) is pushing to amend the Agri-Agra Reform law, which compels banks to set aside loan financing for the farm sector, and expand the list of eligible investments to help lenders comply with the legislation.

“We are actively working with both House and Senate to amend it,” BSP Governor Benjamin Diokno said during the 3rd Economic Journalists Association of the Philippines (EJAP) Forum in Manila on Tuesday.

“We are working to expand the list of projects… ibo-broaden ang eligible list of investments kasi ang nangyayari ngayon ‘yung mga bangko nagbabayad na lang sila ng penalty eh rather than comply,” Diokno 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.

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.

Senator Cynthia Villar, who chairs the Senate Committee on Agriculture and Food, earlier said the amendment to the Agri-Agra law will be among her priority measures for the 18th Congress.  — RSJ, GMA News