I read with interest a news item in a broadsheet that foreigners may now own as much as 60 percent equity in Philippine rural banks, and President Aquino has signed into law RA 10574, an Act allowing the infusion of Foreign Equity in the capital of rural banks. I think this is very good for the progress and development of communities in rural areas. More and more farmers can now avail of loans and other packages as the ability of rural banks to lend farmers is strengthened so that they won’t have to borrow from loan sharks and other fly-by lending groups which proliferate nowadays.
It will also be a motivating factor for the people in the communities to save money and see it as a hope for their future and their children. Likewise, more rural banks established will give residents qualified to work in banks to just stay put in their provinces and work there instead of going to Manila.
These new developments in the countryside is a plus factor in improving the lives of farmers, peasants, small and big entrepreneurs in the provinces around the country, and if progress and development set in, a peaceful community is built, and the threat of insurgency will no longer be present. We all know that insurgency thrives in poor communities. Our government, our President is really working hard to give equal opportunities for everyone, be it in the city or rural areas. The RA 10574 is a big boost to economic growth in the countryside.