BSP Circular 1111
BSP Circular 1111
CIRCULAR NO.11111
Series of 2O2t
The Monetary Board, in its Resolution No. 1607 dated 10 December 202O,
approved the revised rules and regulations governingthe mandatory credit allocation for
agriculture and agrarian reform credit to implement the provisions of Republic Act {R.A.)
No. 10000, otherwise known as'The Agri-Agra Reform Credit Act of 2009.'
Section 1. Sestion 331 of the Manual of Regulations for Banks (MORB) is hereby
amended to implement the provisions of Section 7 of the lmplementing Rules and
Regulations {lRR) of R.A. No. 10000.
(i) Upon death of the ARB and the transfer action to execute
hereditary succession of the awarded land is still in process,
or
{ii) Upon physical incapacity of the ARB to till/manage the
awarded land.
q. Farmer xxx.
r. Formworkerwx.
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Fo r m e r's coope r otiv es xxx.
Fisherfolk>ux.
V. Fisheries ws<.
w. Fishworkerxxx.
Loanoble funds xxx.
Excess compliance in the ten percent ILO%) agrarian reform credit may
be used to offset a deficienry, if any, in the fifteen percent (LS%| other
agricultural and fisheries credit, in general, but not vice versa.
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(1) Actual extension of loans to qualified borrowers {gross of
allowance for probable losses), for purposes of financing
agriculture, fisheries and agrarian reform activities under
Item "j" in this Section (Definitian of termsl, other than
(1) loans rediscounted with universal banks
(UBs)/commercial banks (KBs), or (2) loans to the extent
funded by proceeds from any of the following:
(2') xxx
{2} xxx
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net of unamortized premium or discount) that are purchased
after 20 April 2010:
(a) Investments in bonds issued by the DBP and the LBP, the
proceeds of which shall be used exclusively for on-
lending to the agriculture, fisheries and agrarian reform
sector;
xxx
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benefit of the agriculture, fisheries and agrarian reform
sector;
(ii) The NFA: Provided, that it shall not use the proceeds
of said loans for relending; or
{a} lnvestments in bonds issued by the DBP and the LBP, the
proceeds of which shall be used exclusively for on-
lending to ARBs andlor ARB households or to finance
activities that shall generally benefit ARBs and/or ARB
households orARCs; or
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(b) Investments in other debt securities, the proceeds of
which shall be used to finance activities identified under
Section 23 of R.A. No. 8435, as defined under ltem No.
'j(9)" in this Section (Definition ol termsl: Provided,That
said activities shall generally benefit ARBs and/or ARB
households or ARCs.
xxx
xxx
xxx
Section 2. This Circular shalltake effect fifteen (1.5) calendar days following its
publication in the Official Gazette or in a newspaper of general circulation.
BENJAMIN E. DIOKNO
Governor
0J March 202r
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