A total of 77,375 small farmers and fishers stand to benefit from the imposition of a one-

year moratorium on the payment of loan amortization under the various agri-fishery
credit programs of the Department of Agriculture-Agricultural Credit Policy Council (DA-
ACPC).

The temporary suspension of payments was implemented to aid farmers and fishers
affected by marketing restrictions following President Rodrigo Duterte’s declaration that
the country is under a State of Calamity for a period of six months and that Luzon will be
under an enhanced community quarantine due to the COVID-19 pandemic.

The moratorium, which started on March 16, 2020 up to March 16, 2021, will cover
outstanding loans amounting to P2.03 billion under different DA-ACPC credit programs.
The amount due during the moratorium shall be added to back-end of loan of the
farmer- and fisher-borrowers.

“Given this crisis situation, the DA-ACPC anticipates that the ability of many borrowers
to pay their loans may be affected,” said DA Secretary William Dar.

“Therefore, we will allow all our partner lending conduits to grant a one-year loan
payment moratorium to borrowers who may request for such loan payment relief,”
added Sec. Dar.

Correspondingly, the outstanding liabilities of ACPC’s existing partner conduits was also
granted one-year moratorium equivalent to the total amount of sub-loans to individual
farmer- and fisherfolk-borrowers who availed the loan moratorium.

(DA-ACPC Communications & Public Affairs Division)

Gov’t economic team rolls out P27.1 B package vs COVID-19 pandemic

President Rodrigo Duterte’s economic team has announced a P27.1-billion package of priority actions to help
frontliners fight the 2019 coronavirus disease (COVID-19) pandemic and provide economic relief to people and
sectors affected by the virus-induced slowdown in economic activity.

The package consists of government initiatives to better equip our health authorities in fighting COVID-19 and also
for the relief and recovery efforts for infected people and the various sectors now reeling from the adverse impact of
the lethal pathogen.

Finance Secretary Carlos Dominguez III, who chairs the Duterte Cabinet’s Economic Development Cluster (EDC),
said on Monday the measures in the package “are designed to do two things: First is to ensure that funding is
available for the efforts of the Department of Health (DOH) to contain the spread of COVID-19. Second is to provide
economic relief to those whose businesses and livelihoods have been affected by the spread of this disease.”

“As directed by President Duterte, the government will provide targeted and direct programs to guarantee that
benefits will go to our workers and other affected sectors. We have enough but limited resources, so our job is to make
sure that we have sufficient funds for programs mitigating the adverse effects of COVID-19 on our economy,” he
added.

This fiscal support package crafted by President Duterte’s economic team includes:

· The mobilization of an additional P3.1 billion to contribute directly to efforts to stop the spread of COVID-19,
including the acquisition of test kits. The funds came from the Philippine Amusement and Gaming Corp. (Pagcor),
Philippine Charity Sweepstakes Office (PCSO) and the Asian Development Bank (ADB);

· P2.0 billion representing the initial budget set aside by the Department of Labor and Employment (DOLE) for social
protection programs for vulnerable workers, to be used for wage subsidy/financial support to COVID affected
establishments and workers;

· Mobilization of an existing P1.2 billion in the Social Security System (SSS) to cover unemployment benefits for
dislocated workers;

· The Technical Education and Skills Development Authority (TESDA)’s Scholarship Programs amounting to P3
billion will support affected and temporarily displaced workers through upskilling and reskilling. It is also offering
free courses for all who would like to acquire new skills in the convenience of their own homes, mobile phones and
computers through the TESDA Online Program;

· Various programs and projects of the Department of Tourism (DOT) amounting to P14 billion from the Tourism
Infrastructure and Enterprise Zone Authority (TIEZA) to support the tourism industry;

· P2.8 billion for the Survival and Recovery (SURE) Aid Program of the Department of Agriculture-Agricultural Credit
Policy Council (DA-ACPC), which provides loans of up to P25,000 each at zero interest for smallholder farmers and
fisherfolk affected by calamity and disasters. This initiative includes a one-year moratorium without interest on
payments of outstanding loan obligations of small farmers and fisherfolk (SFF) borrowers under the ACPC Credit
Program amounting to P2.03 billion; and

· P1 billion allotted by the Department of Trade and Industry (DTI) for its Pondo sa Pagbabago at Pag-Asenso (P3)
Microfinancing special loan package of the Small Business Corp. (SBC) for affected micro entrepreneurs/micro, small
and medium enterprises (MSMEs). Also included is the DTI’s ongoing assistance in finding new supply sources and
non-traditional markets for industries affected by supply chain disruptions and the conduct of trade and investment
missions to support the continued operation of industry;

Additional support mechanisms identified by the Economic Development Cluster include the following:

· A loan program of the Government Service Insurance System (GSIS) intended for affected government employees
and retirees;

· Mobilization of funds from government-owned or -controlled corporations (GOCCs) to assist airlines and the rest of
the tourism industry;

· Programs of the largest government banks to help address the impact of the health emergency, such as the
Development Bank of the Philippines (DBP)’s Rehabilitation Support Program on Severe Events (RESPONSE), which
provides public and private institutions in areas declared under a state of calamity with low-interest loans under a
simplified application procedure; and the Land Bank of the Philippines (LANDBANK)’ offer of restructured loan
amortizations by giving longer tenor and grace periods, with the option of a fixed interest rate under the LANDBANK
Calamity Rehabilitation Support (LBP CARES); and

· The grant of temporary and rediscounting relief measures for financial institutions, as approved by the Monetary
Board (MB). Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno earlier said that, “the MB is ready to
deploy any or all its policy tools, as appropriate, to address all challenges to our own financial markets and growth
prospects.”

Secretary Dominguez also said the government will go ahead on regular budgeted expenditures, as accelerated
government spending is now even more necessary to stimulate economic activity and provide direct support to
vulnerable groups and individuals.

“The country and the government have all the tools—medical, financial and monetary—to successfully handle this
situation,” he said.

The state economic managers also reassured the public that the impact of COVID-19 on the government’s key
programs is expected to be limited.

Budget Secretary Wendel Avisado has given the assurance that funds for ‘Build, Build, Build’ projects and all other
government projects currently being implemented as well as those for implementation “are available and government
purchases for equipment and supplies needed by the DOH and other vital goods and services, including those of the
military and the police shall go on unhampered by the current situation.”

According to Socioeconomic Planning Secretary Ernesto Pernia, the one-month community quarantine of the
National Capital Region (NCR) may have a transitory impact on the economy, but needs to be closely monitored for
necessary adjustments.

He emphasized that the protocols already put in place are meant to safeguard the health and well-being of our people,
while mitigating the impact of COVID-19 through the various response measures of the government.

Moreover, the movement of goods and trade will remain unhindered, he said.

Trade and Industry Secretary Ramon Lopez said that the DTI is also working directly with the various industry
sectors to assure the continued supply and stable prices of basic necessities and prime commodities.

The DTI has also imposed a price freeze on basic necessities, and has intensified its consumer protection measures to
penalize and charge profiteers and hoarders, he said.

Agriculture Secretary William Dar reported that in coordination with the Office of the President (OP), DTI, DOH,
Department of Interior and Local Government (DILG), local government units (LGUs) and the Philippine National
Police (PNP), the DA is implementing its Food Resiliency action plan to ensure access to safe and affordable food—
initially for the residents of Metro Manila—including but not limited to rice, sugar, vegetables, root crops, eggs, meat
and poultry.

Meanwhile, Energy Secretary Alfonso Cusi said the Department of Energy (DOE), in unison with its industry
stakeholders, assured the public of full coordination to provide uninterrupted supply of petroleum products and
electricity nationwide, in support of continuing vital economic and social services to the public.

Governor Diokno said, “There is no reason to believe that the COVID-19 crisis could severely cut the Philippine
growth momentum. The truth is that the economic fundamentals are on our side. Even under the worst possible
scenario, the Philippines can still grow this year and in the medium term by about 6 percent.”
The President’s economic team will continuously monitor developments as they progress and will propose additional
funding, as necessary, for matters requiring urgent attention and action.

-oOo-

State-owned Land Bank of the Philippines (LANDBANK) continued to intensify its

support to the agriculture sector as it introduced seven (7) new agri-lending programs
which include programs initiated by the Department of Agriculture (DA) as a direct
response to the rice crisis.

“All these new lending facilities, along with the other existing programs, will help
address the specific requirements of the various players in the agriculture sector,” said
LANDBANK President and CEO Cecilia C. Borromeo.

The first special lending program launched in 2019 was the P10-billion PAlay aLAY sa
Magsasaka ng Lalawigan (PALAY ng Lalawigan) Program to assist rice-producing
provinces by enabling local government units (LGUs) to procure palay produced by their
local farmers, as well as to acquire farm machineries and post-harvest facilities. Last
year, a total of P3.2 billion in loans was approved for the Provinces of Isabela, Nueva
Ecija and Camarines Sur.

The second loan program was the Expanded Survival and Recovery Assistance
Program for Rice Farmers (SURE Aid Program) under the DA, which extended credit
assistance to small farmers tilling one (1) hectare of land and below. Under the
Program, a total of P2.07 billion in loans were provided as immediate financial
assistance to 136,648 farmers nationwide.

The DA and LANDBANK also launched the Rice Farmer Financial Assistance (RFFA)
Program, an unconditional cash transfer program which aims to give P5,000 financial
assistance each to rice farmers tilling 0.5 to 2 hectares of land in 33 provinces
nationwide.

As of February 3, 2020, a total of 5,822 LANDBANK Cash Cards totalling more than
P29 million in cash assistance have been distributed to rice farmers in Pangasinan,
Ilocos Norte, Nueva Ecija, Zamboanga del Sur, North Cotabato, Bataan and Pampanga.

LANDBANK also partnered with the Department of Agrarian Reform (DAR) to introduce
the Accessible Funds for Delivery to Agrarian Reform Benefeciaries (AFFORD-ARBs)
Program which provided loans to finance the production of rice, corn, high-value crops,
as well as farm implements. Outstanding loans for this Program in 2019 reached
P100.86 million, which was availed by 523 farmer-borrowers and a cooperative.

The three (3) other new programs recently launched by the Bank are the Sulong Saka
Program promoting high value crops production, the Sustainable Aquaculture Lending
Program (SALP) to finance projects within the value chain of fishery, mariculture and
aquaculture, and the Greenhouse Farming System Financing Program to help farmers,
cooperatives and agri-entrepreneurs shift to modern farming by adopting the
greenhouse farming technology.

LBP offers rehab assistance program

BAGUIO CITY, June 4 (PIA) - - Entrepreneurs, cooperatives, non-government
organizations, and other sectors may avail of windows of assistance from the Land Bank
of the Philippines (LBP) for rehabilitation assistance, those severely affected by
calamities or for a specific localized program.

LBP CARES Department Manager Jesus Alegre Jr. presented the concept and features of
the program among entrepreneurs and concerned sectors in a Cordillera Business
Forum on Micro, Small and Medium Entrepreneur (MSME) Development and Disaster
Resilience spearheaded by the Department of Trade and Industry - Cordillera Region
(DTI-CAR).

Tagged as “Calamity Rehabilitation Support or CARES Program,” it is a rehabilitation

assistance program available to existing and new customers who have been severely
affected by the calamity in areas that were declared under the state of calamity by the
Office of the President or the local government unit, or for an umbrella program from
where a specific localized program may be created as the circumstances calls for, Alegre
explained.

CARES serves as the bank’s ready program every time there is a calamity, either natural
or man- made. It supports government’s continuing effort to restore economic and
social activities and accessibility in affected areas. Likewise it assists both the local
government and private sector in their respective rehabilitation efforts, he added.

The program consists of two features, rehabilitation through loan restructuring and
rehabilitation credit program for SMEs, LGUs, coops, NGOs, credit facilities such as rural
banks, and home buyers.

In the rehab through loan restructuring, it may be used for additional or new financing
as working capital and/or other expenses to rehab or restore damaged facilities or
structures. It may also be a rehab of loan take-out from other financial institutions which
covers up to the outstanding balance of the principal.

The repayment varies for short term or term loans, meaning loans for a specific amount
that has a specified repayment schedule and a fixed or floating interest rate.

For short term loans, this may be repaid up to five years inclusive of maximum one-year
grace period on both principal and interest payment. The total amount of one year
deferred payment on interest shall be non-interest bearing, and shall be amortized
monthly for three years, starting at the end of the first month after the one-year grace
period on interest payment.

For term loans, the repayment can be extended for additional five years over the
remaining term of the loan at the time of calamity with a maximum grace period of
three years on principal repayment and a maximum grace period of one year on interest
payment.

The interest rate depends on the LBP’s rate at the time of availment which may be paid
monthly, quarterly, semi-annual or annual based on the cash flow of the project
available within two years from the date the area was declared under a state of calamity.

As to the credit program for SMEs, the loan may be used for repair of existing facilities,
purchase or acquisition of a new one or augment working capital requirement. Interest
rate depends on LBP’s lending rate at the time of availment.

Repayment if for repair of existing facilities, acquisition of new facilities or for take-out
loan is up to 10 years with maximum grace period of one year on both principal and
interest payment. But for working capital, repayment will be up to 10 years with a
maximum grace period of one year on both principal and interest payment.

This could be availed within two years from the date the area was declared under state
of calamity. Borrower may opt for monthly, quarterly, semi-annual or annual basis based
on cash flow of the project.

For home buyers, the purpose must be for repair of existing housing units or
construction or purchase of new ones. Interest rate depends on LBP’s lending rate at the
time of availment.

The amount is based on the borrowing capacity of borrower, amount applied for actual
need or appraised value of project.
For repair of existing housing units, maximum of 10 years inclusive of six months grace
period on principal provided combined age of principal borrower and the loan shall not
exceed 65.

For construction or purchase of housing units, maximum of 20 years inclusive of one

year grace period on principal provided the combined age of the principal borrower and
the loan term shall not exceed 65.

For further details, visit the nearest LBP branches. (JDP/SCA-PIA CAR, Benguet )