The central bank is urging Congress to overhaul a law that requires banks to allocate loans for agriculture and agrarian reform, saying improved and more flexible mechanisms will encourage more lending to these sectors rather than the current state where financial institutions just pay penalties for noncompliance.
According to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, improvements to Republic Act No. 10000 or the “The Agri-Agra Law” “will strengthen rural development by providing a holistic approach in addressing the financing needs of the broader agricultural financing ecosystem.”
The proposed amendments to this law contained in House Bill No. 6134 are aimed at t…
Keep on reading: BSP calls for Agri-Agra Law overhaul