Speaker Jose de Venecia Jr. said yesterday the enactment of the measure, known as the "Enhanced Collateral Value of Farm Lands Act of 2002," would immensely contribute to the development of agriculture and the growth of the countryside.
"Farmers would gain easier access to credit using their farmlands acquired under the land reform program as collateral for loans which are to be guaranteed by the government," he said.
He said the enactment of the measure would also improve farm productivity.
"The agriculture sector will get a dramatic lift and in turn will contribute greatly to the growth of the economy," he stressed.
He added that both this sector and the banking community are anticipating the passage of the bill, which would complement the agriculture and fisheries modernization program.
At present, banks, except the Land Bank of the Philippines, do not accept lands covered by land reform as loan collateral.
Under the bill endorsed by the committees on appropriations, agrarian reform, ways and means, and banks, these should be accepted as collateral.
Among the authors of the measure are Majority Leader Neptali Gonzales II and chairmen Rolando Andaya Jr. (appropriations), Gregorio Ipong (agrarian reform), Jules Ledesma (ways and means) and Jaime Lopez (banks). – Jess Diaz