DAR and Landbank Signed IRR for Debt Moratorium

The Department of Agrarian Reform (DAR) and the Land Bank of the Philippines (LandBank) signed the implementing rules and regulations (IRR) on the debt moratorium on the payment of land amortization and interests incurred by agrarian reform beneficiaries (ARBs).

Landbank released a statement regarding a  Joint Administrative Order (JAO) outlining the IRR for Executive Order (EO) 4 by President Ferdinand R. Marcos Jr.

The EO called “Directing the Implementation of a Moratorium on the Payment of the Principal Obligation and Interest of the Amortization Due and Payable by Agrarian Reform Beneficiaries” was signed by President Marcos Jr. last September 13. The EO indicates a one-year moratorium on the loan payments of ARBs. The ARBs are also set to receive agricultural land under the Republic Act 6657 or the Comprehensive Agrarian Reform Program (CARP).

The JAO was signed by  DAR Secretary Conrado M. Estrella III and LandBank President and CEO Cecilia C. Borromeo. The JAO indicated a one-year moratorium that covered the annual interest due and payable and the payment of the principal value of the ARBs.

“The 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 Estrella.

Landbank also says that the current debt moratorium covers the financial obligation to pay the total cost of land stated by Presidential Decree 27, and includes the interest rate of 6% annually as stated in EO 228 Section 6.

Source: Business Mirror