CREATING THE PRESIDENTIAL COMMITTEE ON AGRICULTURAL CREDIT PHILIPPINES

• Number: Presidential Decree No. 792
• Sections: 8

Preamble

WHEREAS, the agricultural sector generates employment for

almost half of the entire Filipino population and accounts for one-third

of the gross domestic product;

WHEREAS, further agricultural development is essential not

only for the efficient utilization of available land and manpower

resources but for the success of our effort to produce enough food for

our people;

WHEREAS, credit is a crucial key to agricultural

development, as proven by the Masagana 99 program;

WHEREAS, our credit resources are limited and must be

channelled to areas where they are most needed and where they will

generate the greatest social and economic benefits to our farmers;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution,

do hereby order and decree that:

Section 1

SECTION 1. A Presidential Committee on Agricultural Credit

(PCAC) shall be immediately created with the Governor of the Central

Bank as Chairman, the Secretary of Agriculture as Vice-Chairman and the

following as members:

The Director-General

National Economic and Development Authority

The Secretary

Department of Local Government and Community Development

The Secretary

Department of Natural Resources

The Secretary

Department of Agrarian Reform

The President

Philippine National Bank

The Chairman of the Board of Governors

Development Bank of the Philippines

The President

Land Bank of the Philippines

Section 2

SEC. 2. The PCAC shall:

Advise all government financial institutions on matters

related to agricultural credit programs;

Review ongoing and proposed agricultural credit programs, and

recommend modifications where necessary;

Ensure coordination in the implementation of agricultural

credit programs, not only among financial institutions, but also between

these institutions and government agencies involved in the

implementation of said programs;

Synchronize credit programs for production with credit programs

for such activities as (1) land development and improvement, (2)

farm mechanization, (3) production and supply of agricultural inputs,

(4) transportation and storage, (5) processing, (6) marketing,

and other related activities;

Establish priorities and set loan ceilings for the purpose of

allocating scarce credit resources;

Exercise the same authority over institutions not mentioned

above but involved in agricultural credit, and whose funds are derived,

even if only partially, from the above-named institutions.

Section 3

SEC. 3. A Technical Board for Agricultural Credit (TBAC)

shall be created simultaneously with the PCAC to assist the PCAC in the

implementation of the aforementioned functions. The TBAC shall have the

Deputy Governor of the Central Bank for Bank Supervision and Examination

as Chairman, and the following, or their respective representatives,

as members:

The Undersecretary for Cooperatives

Department of Local Government and Community Development

The Assistant Secretary

Department of Agriculture

The Assistant Secretary

Department of Natural Resources

The Assistant Director-General

Programs and Projects Office

National Economic and Development Authority

The Bank Economist and Vice-President

Philippine National Bank

The Executive Director

National Food and Agriculture Council

The Assistant Secretary and Director of the Bureau of Farm

Management

Department of Agrarian Reform

The Administrator

Agricultural Credit Administration

The Manager of the Agricultural Department

Development Bank of the Philippines

The Senior Vice-President

Land Bank of the Philippines

The Director of the Department of Rural Banks, Savings and

Loan Associations

Central Bank of the Philippines

Section 4

SEC. 4. The TBAC will organize and commission its staff

and/or other agencies to do research work, conduct surveys and make

studies essential to the proper design and improvement of the

agricultural credit programs. These are envisioned to accelerate the

development of the agricultural sector. Members of said staff, to be

hired by the TBAC shall not be considered employees of the Central Bank

although they shall be administratively under the direction of the

Deputy Governor of the Central Bank for Supervision and Examination. The

same shall be exempted from Civil Service and WAPCO regulations.

Section 5

SEC. 5. The Budget Commission is hereby instructed to

add annually the amount of P2.5 million to the budget of the Department

of Agriculture for the purpose of financing all the administrative and

operating expenses of the PCAC, including research and surveys.

Section 6

SEC. 6. The PCAC is hereby authorized to receive and

utilize donations and grants from local and/or foreign sources to

augment its annual budget.

Section 7

SEC. 7. All laws and executive orders, or parts thereof,

contrary to, or inconsistent with the provisions of this Decree are

hereby repealed, amended or modified accordingly.

This Decree shall take effect immediately.

Done in the City of Manila, this 4th day of September, in the

year of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ROBERTO V. REYES

Acting Executive Secretary