LandBank publishes TRI on loan payment moratorium for ARBs

The Land Bank of the Philippines and the Department of Agrarian Reform on Wednesday signed a joint administrative order providing the rules and regulations implementing Executive Order No. 4 of the 2022 series, or the moratorium on the payment of depreciation and land interests for the beneficiaries of the agrarian reform.

The EO, signed by President Ferdinand Marcos Jr. on Sept. 13, calls for a one-year moratorium on loan repayments by ARBs.

“It is our duty in government to put farmers first, not just because they are the ones who keep us alive, but because they will get our economy going again,” said LandBank President and CEO Cecilia. Borromeo.

The IRR clarified that the one-year moratorium covers the payment of principal value and annual interest due and payable by the ARBs.

“The one-year moratorium period will allow time for Congress to pass legislation condoning existing land reform loans for current ARBs and free distribution of land for future beneficiaries,” DAR Secretary Conrado said. Estrella III.

The moratorium covers the financial obligation to pay the full cost of the land under Presidential Decree No. 27, including interest at the rate of 6% per annum, as provided for in Article 6 of EO No. 228.

It also covers the financial obligation to pay principal value including annual interest of 6% of the 30 year land depreciation of ARBs under Section 26 of RA 6657 as amended.

“LandBank supports this historic initiative which is now taking off. We will provide immediate financial assistance to ARBs across the country and achieve positive results to ensure food security in the country,” Borromeo said.

LandBank serves as the national government’s collection agent for ARB land write-offs, in accordance with its mandate as the financial intermediary of the Comprehensive Agrarian Reform Program. All collections are remitted to the Office of the Treasury.

The JAO will help identify eligible beneficiaries to benefit from the one-year payment suspension.

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