Establishing The Comprehensive Agricultural Loan Fund (Calf), Creating The Agricultural Credit Policy Council (Acpc) And For Other Purposes

Case Overview and Summary

Summary of Executive Order No. 113

Declaration of Policy (Section 1):
- The State aims to spur agricultural development by providing financial and other incentives to encourage investments in agriculture.

Consolidation of Agriculture and Agriculture-Related Loanable Funds (Section 2):
- All existing and future loan funds for agriculture and agriculture-related purposes shall be consolidated into the "Comprehensive Agricultural Loan Fund" (CALF).
- CALF shall be composed of: 1) government-owned funds administered by the Central Bank, 2) loanable funds for agricultural commodities and activities administered by government agencies, corporations and banks sourced from the National Treasury, and 3) funding of foreign-assisted projects (subject to negotiation).
- CALF may be augmented through other sources like appropriations, loans, donations, and garments.

Termination of Agreements (Section 3):
- Upon the effectivity of this Executive Order, all agreements providing for the administration of government-owned and/or National Treasury-sourced funds shall be terminated.
- All concerned agencies, including the Central Bank of the Philippines, shall transfer said funds, assets, and liabilities to CALF within one (1) month.
- The Ministry of Agriculture and Food (MAF) shall assume all rights and obligations pertaining to the administration of the transferred funds.
- The termination of agreements shall not affect obligations incurred by third parties until fully liquidated.

Management and Utilization of CALF (Section 4):
- CALF shall be under the control and supervision of the MAF.
- MAF is authorized to manage CALF, including designating a Trustee Bank to invest unencumbered cash resources.
- MAF shall administer CALF through the banking system, except for the Guarantee Fund for Small and Medium Enterprises (GFSME) and the Quedan Guarantee Fund Board (QGFB).
- MAF may use CALF earnings for agriculture projects and activities, including those of the Agricultural Credit Policy Council (ACPC).

Creation of the Agricultural Credit Policy Council (ACPC) (Section 5):
- The ACPC is established to replace the Presidential Committee on Agricultural Credit (PCAC) and the Technical Board of Agricultural Credit (TBAC).
- ACPC is composed of the Minister of MAF (Chairman), Governor of Central Bank (Vice-Chairman), Director-General of NEDA, Minister of Budget and Management, and Minister of Finance.
- ACPC shall assist MAF in synchronizing credit policies and programs for priority agriculture programs.
- ACPC shall review and evaluate the economic soundness of agricultural credit programs, and all proposed programs shall have ACPC's prior approval.
- ACPC shall review reports and documents of programs with agricultural credit and financing components.
- ACPC shall undertake measures to increase its fund base and adopt liquidity, interest stabilization, and risk cover mechanisms.

Officers of the Council (Section 6):
- The Chairman shall administer, direct, and manage the implementation of ACPC's policies.
- An Executive Director shall be appointed by ACPC to implement its programs, projects, and decisions.
- ACPC may appoint Directors to assist the Executive Director.
- ACPC shall hire necessary personnel, subject to Civil Service rules and regulations.

Separability Clause (Section 7):
- Any unconstitutional provision shall not nullify other provisions if they can still accomplish the objectives.

Repealing Clause (Section 8):
- All laws, orders, issuances, rules and regulations inconsistent with this Executive Order are repealed or modified.

Effectivity (Section 9):
- This Executive Order shall take effect immediately.