By Katrina Gracia Consebido
President Ferdinand R. Marcos Jr. on Tuesday, Sept. 13, signed an executive order sparing agrarian reform beneficiaries (ARBs) from paying their land amortization and interests.
The signing of the executive order for a year-long moratorium on payments of ARBs for agricultural lands distributed under the Comprehensive Agrarian Reform Program at the Heroes Hall in Malacañan Palace is among Marcos’ activities for his 65th birthday.
Agrarian Reform Secretary Conrado Estrella III was present in the event, along with 160 Department officials, land reform beneficiaries, and advocates.
Section 26 of Republic Act 6657 or the Comprehensive Agrarian Reform Law states that “lands awarded pursuant to the law shall be paid for by the beneficiaries to the Land Bank of the Philippines in 30 annual amortizations at six percent interest per annum.”
During his first state address, Marcos ordered the Congress to pass legislation suspending the amortization of ARBs who have existing loans to ease their burden and use the alternative amount.
“The condonation of the existing agrarian reform loan will cover the amount of P58.125 billion benefiting around 654,000 agrarian reform beneficiaries and involving a total of 1.18 million hectares of awarded lands,” Marcos said.
Agri Party-list Rep. Wilbert Lee already proposed a bill seeking to free ARBs from their unpaid land reform amortization and interests.
Many ARBs and advocates have been asking for the suspension of amortization payments and loan interests amid the crises and challenges in the country.
A study conducted in 2016 showed that pursuing the collection of amortization and interests will not be beneficial to the government due to its “high transaction costs.”
Another study conducted by the DAR-Policy and Strategic Research Service showed that 43.6% principal and 56.4% interests constitute the total amount of arrearages for ARBs with deficient amortization payment.
