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Agrarian Production Credit Program (APCP

)
National Program Management Committee
Resolution No. 008
Series of 2014
“Resolutions Approving the Amendments and Addenda to the
Memorandum of Agreement (MOA) and Implementing Rules and
Regulations (IRR) of APCP and NISCO’s request for Loan
Restructuring/Refinancing of its Past Due Loans”
WHEREAS, the DA, DAR and LANDBANK jointly implemented the Agrarian
Production Credit Program (APCP) which provides credit, technical assistance and
other support services to ARBs through their ARB organizations;
WHEREAS, the APCP has been implemented for more than two (2) years during
which, several issues cropped up which need to be addressed to improve the
credit delivery, development assistance, and to benefit more ARBs so that the
program will become even more responsive to their financing needs. As of 31
October 2014, P828 Million worth of loans was approved, of which, P577 Million
has been released to 256 ARB Organizations benefiting 10,684 ARBs in 45
provinces; and
WHEREAS, the NISCO requested to restructure/refinance its past due loans
amounting to P 25 Million due to lack of capital to pay the past due loans
attributed to its defaulting loan sub-borrowers, among others.
WHEREAS, the following provisions of the MOA/IRR are hereby amended/added:
Reference

From

To

A. Memorandum of Agreement (MOA)
Article II.2

Three Hundred Million Pesos
(PhP 300,000,000) of the initial
amount of P1 Billion for CY
2012 has been allocated
exclusively
for
Negros
Occidental

An initial Three Hundred Million
Pesos (Php 300,000,000) of the
Program Fund is allocated for
Negros Occidental considering
the magnitude of ARBs and lands
to be distributed in the province.

Article II.4

The interest earnings from the
trust placement shall be
reverted by DA to the National
Treasury.

Fifty (50%) percent of the net
interest earnings from the trust
placement with LANDBANK shall
be used as the operating fund of
the Program based on the
approved work and financial plan
by the APCP National Program
Management Committee. The
remaining interest earnings from
the
trust
placement
with
LANDBANK shall be reverted by
DA, through the TBG to the
Bureau of the Treasury.

Article III

Each party to this MOA shall

Each party to this amended MOA

Reference

Article III.1.b

From
exercise its best effort to
accommodate
the
other
party’s request, as long as the
same
are
reasonably
necessary in carrying out the
activities envisioned in this
MOA.

To
shall exercise its best effort to
accommodate the other party’s
requests, as long as the same are
reasonably necessary in carrying
out the activities envisioned in
this MOA, provided that the
requests conform to the terms of
this MOA.

Through its attached agencies,
provide basic support services,
such as but not limited to
marketing
assistance
and
packages of technology to
qualified ARBOs.

Through
its
bureaus,
the
attached agencies and regional
offices provide basic support
services, such as, but not limited
to marketing assistance and
packages
of
technology
of
qualified ARBOs.

B. Implementing Rules and Regulations (IRR)
Section F.4

The interest earnings from the
trust placement shall be
reverted by DA, through TBG,
to the National Treasury.

Section F.1

The APCP is a transition credit
program which will prepare the
ARBOs to become credit
conduits to address the credit
needs of their members.

Transition
Period

The eligible conduits are
entitled to 1 to 4 crop cycles
depending on the production
cycle of agricultural crops to
be produced but not to exceed
two (2) years

An operating fund shall be set up
for APCP operations. The APCP
NPMC Chair shall authorize
LANDBANK to transfer 50% of the
net earnings from the trust
placement
to
the
special
account, based on the approved
work and financial plan by the
APCP NPMC and authorize the
ACPC to draw from the said
special account. The remaining
interest earnings from the trust
placement with LANDBANK shall
be reverted by DA, through the
TBG to the Bureau of the
Treasury.
The APCP is a transition credit
program which will use a
graduated scheme in providing
credit to prepare the ARBOs/POs
to become bankable and pass the
regular criteria of the bank.
All ARBOs, FOs other than ARBOs
and POs shall graduate from the
program to the regular lending
window of LANDBANK after the
transition period of three (3)
years reckoned from the date of
first release of original loan under
the APCP subject to passing the
Enhanced Coop Accreditation
Criteria (ECAC). Said transition

Reference

Loan
Restructuring

From

Loan Restructuring may be
granted to those affected by
Calamity as certified by the
MAO.

To
period shall also cover past due
loans paid through the guarantee
fund that were subjected to the
original two (2) year transition
period.
Loan
Restructuring
(with
refinancing) may be granted only
once to existing loans and past
due loans paid through the
guarantee
based on the
following reasons:

1. Calamity
subject
to
validation/certification
by
the MAO. The amount to be
restructured shall be net of
PCIC claims (if any).
2. Other justifiable reasons
subject
to
validation/recommendation
of LPMC and approval by
NPMC.
Said restructured loans shall still
be covered by APCP guarantee.
Maximum Loan
Amount

For crop production – total
credit requirement of the
eligible
borrowers
as
determined by LANDBANK

For crop production – total credit
requirement
of
the
eligible
borrowers as determined by
LANDBANK

For working capital and fixed For
agri-enterprise
and/or
asset acquisition projects – livelihood projects:
10% of the outstanding loan
portfolio of the ARBO but not 1. For those with existing crop
to exceed P 1,000,000
production loan – up to 10% of
loan portfolio of the borrowers.
The debt-to- equity ratio shall
be waived for ARBOs and FOs 2. For those without existing crop
production loan under the
other than ARBOs only.
APCP, up to P1 million per
borrower.
The debt-to- equity ratio shall be
waived for eligible borrowers
other than Other Conduits.

Reference
General
Guidelines

From
None

To
The Board of Directors and
Officers of the ARBOs, FOs other
than ARBOs, and POs shall be
given one (1) year moratorium
on Tax Identification Number
(TIN) requirement, reckoned from
the date of loan application, due
to the following reasons:

1. They were denied of TIN
registration by BIR due
to absence of birth
certificate as evidenced
by a letter of denial or
equivalent
document
from the BIR; and
2. They do not have birth
certificate records from
the NSO as certified by
NSO on such or any
equivalent document if
NSO does not want to
certify.
NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED that this
Committee, upon consideration of the request of NISCO on loan
restructuring/refinancing, hereby approves the said request subject to existing
APCP program policies.

NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED that this
Committee, upon consideration of its rationale and objectives, hereby approves
the amendments and addenda to the APCP MOA and IRR.
Approved this ___ day of ____________ 2014 in _______________________ Philippines.

APCP PROGRAM MANAGEMENT COMMITTEE

Edilberto M. De Luna – PMC Chair

Assistant Secretary, DA

Cecilia C. Borromeo – PMC ViceChair

Rosalina L. Bistoyong – PMC ViceChair

Executive Vice-President, Land
Bank

Undersecretary, DAR

Carlos O. Tulali – PMC Member

John C. Bugaling – PMC Member

Farmer Representative – TFM

Farmer Representative - PARC

Maria Edita Z. Tan – PMC Member
Member
Assistant Secretary, DOF

Ralph C. Pablo – PMC

Director, DENR