A BILL filed at the Senate seeks to extend the corporate life of
state-run Land Bank of the Philippines, the country's fourth largest in
terms of assets, by another 50 years after this expires two years from now.
Landbank branch in Makati City -- Jonathan L. Cellona
Senator Sergio R. Osmeña III, chairman of the committee on banks,
financial institutions and currencies, has filed Senate Bill (SB) No.
2944 that will extend Landbank's corporate life by 50 years and extend
this further by another 50 years.
SB 2944 seeks to amend Section 74 of Republic Act (RA) No. 3844 or the
Agricultural Land Reform Code that created the bank. It read: "… The
legal existence of the Bank is extended for a period of fifty (50) years
from the expiration of its original term on 8 August 2013, renewable for
another fifty (50) years."
RA 3844 was approved on August 8, 1963.
Mr. Osmeña, in a text message yesterday, explained it is important to
extend Landbank's corporate life as the bank "not only funds the
agrarian reform program but is also the depository bank of government
entities and agencies. "
"Like any corporate entity, it signs long-term contracts with various
lenders and borrowers. These must be respected. When corporate life
ends, it loses authority to transact business and existing clients
suffer," he added.
He also said he chose 50 years "to afford [the bank] the flexibility to
sign long-term loans or to issue long-term bonds, and also, to signal to
the public that this institution will be [in] business indefinitely."
In SB 2944's explanatory note, Mr. Osmeña also pointed out that Landbank
also collects taxes and fees for government agencies and is the
principal disburser of funds under the government's conditional cash
transfer program.
Most importantly, it "provides development financing to farmers,
fisherfolk cooperatives, microenterprises, small and medium enterprises,
banks and local government units."
Mr. Osmeña said he expected the bill to be passed early next year.
At the House of Representatives, party list Rep. Cresente C. Paez,
representing the COOP NATCCO, has filed House Bill No. 4621, a parallel
bill aiming to extend the corporate life of Landbank by 50 years.
Messrs. Osmeña and Paez's bills are pending at the committee level.
Landbank earned P5.52 billion in the first half, 15% more than in the
same period last year. -- Rouchelle R. Dinglasan
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