Increasing the Loan Value and Guarantee Coverage Under the Food Quedan Financing Program and for Other Purposes

Case Overview and Summary

Summary of Executive Order No. 849

Increasing the Loan Value and Guarantee Coverage under the Food Quedan Financing Program

- The loan value for food quedans pledged and/or mortgaged under the Food Quedan Financing Program shall be increased from 70% to 80%. (Section 1)
- The guarantee coverage under the said program shall be increased from 70% to 80% of outstanding loan. (Section 2)
- The increase in both loan value and guarantee coverage shall be subject to all other existing rules and regulations. (Section 3)
- The Quedan Guarantee Fund Board, which is attached to the National Food Authority, shall streamline and expand its organization to cover more rice and corn producing provinces. (Section 4)
- The Quedan Guarantee Fund Board is granted exemption on all personnel matters as provided to the National Food Authority under Executive Order No. 839. (Section 4)
- The order aims to facilitate the augmentation of food businessmen's operating capital and trigger private procurement of palay, corn, and other farm produce. (Whereas clause)
- The private food business sector has responded satisfactorily under the Food Quedan Financing Program, with a perfect record of repayment and no bonded stock unaccounted for. (Whereas clause)
- Recent bumper crops of palay and corn necessitate further augmentation of food businessmen's operating capital to stabilize ex-farm prices. (Whereas clause)