Establishment for a Credit Stabilization Fund by the Quedan Guarantee Fund Board

March 17, 1984

LETTER OF INSTRUCTIONS NO. 1392

AUTHORIZING THE QUEDAN GUARANTEE FUND BOARD TO PROVIDE MARKETING CREDIT SUPPORT FOR SARILING SIKAP AND/OR KKK PRODUCTS, THE ESTABLISHMENT OF A CREDIT STABILIZATION FUND AND FOR OTHER PURPOSES

 

WHEREAS, the Food Quedan Financing System has been institutionalized under LOI Nos. 696, 704, 1024, 1139, and EO No. 849 in order to encourage banking institutions to channel their loanable funds to food businessmen and thereby augment the latter's operating capital, trigger extensive private procurement of the farmer's produce, stabilize farmgate prices and hasten the uplift of livelihood in the rural areas;

WHEREAS, sixty-five (65) accredited banks have positively responded by having extended more than P600M quedan loans to more than three hundred fifty (350) food businessmen throughout the country;

WHEREAS, food businessmen have very laudably participated by not only posting an unprecedented perfect repayment performance but also by increasing their procurement of Masagana and Agrarian Reform Farmers' harvest to the tune of 10.7 Million cavans of grains and 2.4 Million kilograms of other food produce;

WHEREAS, as an added impetus to the current thrust for economic self-reliance, the beneficial effects of the Food Quedan Financing System must be sustained and its successful experiences extended to support the procurement and marketing of Sariling Sikap and/or KKK products;

WHEREAS, in a tight financial climate, the need is all the more for expeditious access to marketing credit in order to spur production and stabilize consumers' price of basic food commodities.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct:

1. That, food, feed and energy-related products under the Sariling Sikap and/or KKK projects shall immediately be included under the purview of the Quedan Financing Program;

2. That, the Quedan Guarantee Fund Board, using part of its retained earnings, shall be empowered to perform financing functions either on its own account or in joint arrangement with banking institutions duly accredited with the Quedan Financing Program;

3. That, in the performance of its financing functions, the Quedan Guarantee Fund Board shall give emphasis to the extension of credit support to market retailers for the procurement and distribution of Sariling Sikap and/or KKK products;

4. That, Credit Stabilization Fund shall be established and administered by the Quedan Guarantee Fund Board to serve as a self-sustaining fund to promote, through rebates and other incentives, more credit support from the banking sector for the marketing of Sariling Sikap, KKK, Masagana, Maisagana, Biyayang-Dagat products and those of other government-sponsored production programs;

5. That, a portion of retained earnings and other income of the Quedan Guarantee Fund Board shall serve as start-up fund for credit stabilization;

6. That, to augment the Credit Stabilization Fund, the Quedan Guarantee Fund Board shall also be empowered to solicit and accept contributions and/or donations, conduct fund-raising promotions and negotiate for soft loans whether from local or foreign sources subject to the approval of the Monetary Board and the President of the Philippines in the latter case. AcICHD

All Laws, Acts, Executive Orders, Letters of Instructions, Rules and Regulations or parts thereof inconsistent with this Letter of Instructions are hereby repealed, amended or modified accordingly.

This Letter of Instructions shall take effect immediately.

DONE in the City of Manila, this 17th day of March, in the year of Our Lord, nineteen hundred and eighty-four.