De Venecia said that House committee on agrarian reform headed by Rep. Gregorio Ipong and the House committee on banks headed by Manila Rep. Jaime Lopez have approved a consolidated bill on the proposed Enhanced Collateral Value of Farm Lands Act of 2002.
He said that a certification on availability of funds verified by the appropriations committee headed by Rep. Rolando Andaya Jr. is the remaining step left before the consolidated bill is sent to the Rules committee for plenary debates.
"The Guarantee Fund will provide farmers greater access to rural credit, even allowing him to mortgage his rights to partially paid farm land acquired under the Comprehensive Agrarian Reform Program," he explained.
Mortgaging of rights is prohibited under the present CARP law, giving CARP beneficiaries limited access to credit. The bill creating the Guarantee Fund solves this by allowing agricultural lands to be used as collateral to secure loans to be used exclusively for agricultural production, land development, post-harvest facilities, livelihood and related activities.
The size of the loan depends on the actual requirement but not to exceed the valuation set by the Department of Agrarian Reform.
The Fund will be sourced from one percent of the total loanable funds of all banking institutions under the agrarian reform credit of Agri-Agra Law. The one percent of the 10 percent shall be invested exclusively, without any alternative mode of compliance, for the purchase of QUEDANCOR Agri-Agra Reform Bonds.
De Venecia cited the principal authors of the bill , Majority Leader Neptali Gonzales II, Reps. Constantino Jaraula, Hussin Amin, Rodriguez Dadivas, Narciso Monfort, Augusto Syjuco, Jesli Lapus, Raul del Mar, Ipong, Jose Lacson, Alipio Badelles, Gerry Espina, Amado E spino Jr., Lopez, Carmen Cari and Eduardo Zialcita for addressing the "gaping" need for greater access to agricultural credit. – Efren Danao