WHEREAS, it is the policy of the State to pursue a massive and sustained food self-sufficiency program, a rational dispersal of industries in the rural areas, a redirection of credit resources from the urban centers towards the countryside, and a mandatory allocation of at least twenty-five per cent (25%) of the loanable funds of all banking institutions for agricultural credit in general, of which at least 10% shall be made available to agrarian reform beneficiaries.

WHEREAS, in order to accelerate rural development and growth, credit resources have to be generated and expanded through effective financial intermediation and sound lending operations so that the same could be channelled to, and utilized in, priority agricultural, industrial production areas;

WHEREAS, on the other hand, increased credit resources in banks and other financial intermediaries could be generated and increased only if the vital importance of credit, insofar as it relates to the country ™s economic development, is inculcated in the minds of the citizenry through a continuing campaign that will involve all sectors of society and all levels of the government national, provincial, city, municipality and barangay.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers in me vested by law, do hereby create a National Commission in Countryside Credit and Collection, which shall take charge of strengthening and rationalizing the country ™s rural credit system.

1. The Commission shall be composed of the following:

(a) Governor, Central Bank of the Philippines, Chairman

(b) Secretary, Department of Agrarian Reform, Vice-Chairman

(c) Secretary, Department of Industry, Member

(d) Secretary, Department of Local Government and Community Development, Member

(e) Secretary, Department of Agriculture, Member

(f) Secretary, Department of Education and Culture, Member

(g) Secretary, Department of Public Information, Member

2. It shall be the primary and direct responsibility of the Commission to formulate such policies, measures and programs as may be necessary to foster credit consciousness in the rural areas, to develop better paying habits and attitudes among beneficiaries of credit and intermediaries; to contribute to the improvement in the collection effort in government-assisted financing program; and the undertaking of studies for the inclusion of bank credit consciousness and responsible use of credit in school curricula.

3. The Central Bank of the Philippines shall provide staff, financial material and such other support and assistance which may be required by the Commission in the performance of its functions.

4. The Commission is hereby further authorized to call upon any department, bureau, office, agency or instrumentality of the Government, including Government-owned or controlled corporations, for such assistance as it may need in the discharge of its functions and responsibilities; Provided, however, that the Commission may contract with corporations, associations or individuals on any aspect of its work as it may deem necessary to accomplish its objectives.

5. The members of the Commission in the discharge of their responsibilities shall receive an emolument to be determined by the Monetary Board but which shall not exceed one thousand pesos for any single month. The amount necessary to pay said emolument shall be disbursed from such financial assistance as the Central Bank may provide.

This Order shall take effect immediately.

DONE in the City of Manila, this 28th day of April in the year of Our Lord, nineteen hundred and seventy-six.


By the President:

(SGD.) JUAN C. TUVERA
Presidential Assistant