Magsasaka Party-list continues to push for the passage of a bill that seeks the condonation of debt burdens and amortizations accrued by agrarian reform beneficiaries (ARBs).

“Condoning the debts now of the agrarian reform beneficiaries will not only be a right step in pursuing social justice, but it will also provide a stimulus for an economic growth wherein the country’s agricultural sector will be at the forefront,” said Robert Nazal, representative of Magsasaka Party-list.

Nazal vowed that once his party-list’s internal dispute had been settled, he would push for the approval of the measure. He was referring to the Supreme Court's (SC) issuance of a temporary restraining order (TRO) on his assumption as House member.

READ: https://mb.com.ph/2022/10/20/comelec-to-abide-respect-sc-resolution-on-magsasaka-pl-dispute/

“The farmer-beneficiaries will be provided a fresh start and will be released from the bondage from where the law truly intended them to be freed,” he said.

President Ferdinand “Bongbong” Marcos Jr. said, in his first State of the Nation Address (SONA), that his administration would push for a one-year ARB debt moratorium.

READ: https://mb.com.ph/2022/07/25/marcos-to-grant-1-year-moratorium-on-payments-interest-for-agrarian-reform-beneficiaries/

Marcos estimated that the condonation would cover about “P58.125 billion benefiting around 654,000 ARBs and involving a total of 1.18 million hectares of awarded lands".

Nazal pointed out that the government had difficulty in the collection of loans afforded to ARBs, hence a need for the condonation of said debts.

“However, despite the noble intentions, the government currently has a staggering collectible deficit from the foregoing loans on both the land and the credit secured by agrarian reform beneficiaries...that being said, it must be noted that the failure of collection stems not just from lack of efficient administration of collection but also the inability of the farmer beneficiaries to shoulder the loans in the first place, not to mention the compounded interests, penalties, or surcharges,” he said.

In his statement, he cited data by the Bangko Sentral ng Pilipinas (BSP) which found that loans from Philippine banks to the agricultural and agrarian sector had ballooned 19.3 percent, from P713.6 billion in 2020 to P851.76 billion in 2022.

“In sum, prolonging the burden of the farmer-beneficiaries benefits no one. The running interest unduly increase debt, but the debt remains just a debt. The government cannot afford the costs of collection,” Nazal ended.

Last September, the House of Representatives Committee on Agrarian Reform formed a Technical Working Group (TWG) to consolidate several House Bills which seek the condonation of ARB debt.

READ: https://mb.com.ph/2022/09/14/farmers-debt-condonation-bill-moves-forward-in-house/