Article 153Labor and Agrarian Laws and Social Legislation, p. 153

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

Only the fruits of the PDTF shall be used for the

purposes provided in this Act. Any undisbursed fruits for

the preceding year shall form part of the disbursible

portion of the PDTF in the following year.

For the purpose of monitoring the earnings of the

PDTF, the NAPC shall:

(1)

Source

funds

for

the

establishment

of

and

augmentation to the Trust Fund;

(2)

Recommend

to

the

appropriate

government

department or agency the accreditation of organizations

and institutions that shall act as resource partners in

conducting

institutional

development

and

capability

building

activities

for

accredited

organizations

and

beneficiaries

of

microfinance

and

micro-enterprise

programs;

(3) Ensure that validation and monitoring activities

are conducted for funded institutional development and

capability building projects/programs/beneficiaries; and

(4) Promote research and development work on

livelihood

and

microfinance

technology

and

publications/communications programs that assist the

poor beneficiaries.

Section 11. Purposes of the People's Development

Trust Fund (PDTF) . – The earnings of the PDTF shall be

utilized for the following purposes:

(1) Consultancy and training services for microfinance

institutions and their beneficiaries on the establishment

of the necessary support services, social and financial

preparation of beneficiaries, preparation of plans and

programs

including

fund

sourcing

and

assistance,

establishment of credit and savings monitoring and

evaluation mechanisms;

(2) Scholarships or training grants for microfinance

staff and officers, and selected beneficiaries;

(3) Community organizing for microfinance, livelihood

and micro-enterprises training services;

(4)

Livelihood/micro-enterprise

project/program

feasibility studies and researches;

(5) Savings mobilization and incentive programs, and

other similar facilities;

(6) Information and communication systems such as

baseline

surveys,

development

monitoring

systems,

socioeconomic

mapping

surveys,

organizational

assessments, and other similar activities;

(7) Legal and other management support services

such as registration, documentation, contract review and

enforcement, financial audit and operational assessment;

(8)

Information

dissemination

of

microfinance

technology; and

(9)

Other

activities

to

support

microfinance

as

approved by the designated agency administering the

PDTF.

The PDTF may be accessed by the following:

(a) Registered microfinance organizations engaged in

providing micro-enterprise services for the poor to enable

them to become viable and sustainable;

(b) Local government units providing microfinance

and micro-enterprise programs to their constituents:

Provided , That the PDTF shall not be used by the LGUs for

personal services and maintenance and other operating

expenses; and

(c) Local government units undertaking self-help

projects where at least twenty-five percent (25%) of the

total earnings of the PDTF shall be used exclusively for

the provision of materials and technical services.

Section 12. The role of Local Government Units

(LGUs) . – The local government units, through the local

development councils of the province, city, municipality,

or barangay shall be responsible for the formulation,

implementation,

monitoring

and

evaluation

of

the

National Anti-Poverty Action Agenda in their respective

jurisdictions. The LGUs shall:

(a) Identify the poor in their respective areas based on

indicators such as the minimum basic needs approach

and

the

human

development

index,

their

location,

occupation, nature of employment, and their primary

resource base and formulate a provincial/city/municipality

anti-poverty action agenda;

(b) Identify and source funding for specific social

reform and poverty alleviation projects;

(c) Coordinate, monitor and evaluate the efforts of

local

government

units

with

the

private

sector

on

planning

and

implementation

of

the

local

action

program for social reform and poverty alleviation; and

(d) Coordinate and submit progress reports to the

National Anti-Poverty Commission regarding their local

action programs.

Nothing in this Act shall be construed as diminishing

the powers granted to the local government units under

the Local Government Code.

TITLE II MICROFINANCE SERVICES FOR THE

POOR

Section 13. Microfinance program . – The programs

and implementing mechanisms of the Social Reform

Agenda's Flagship Program on Credit shall be integrated,

adopted and further enhanced to effectively support the

objectives of this Act along the following thrusts:

(1) Development of a policy environment, especially in

the area of savings generation, supportive of basic sector

initiatives dedicated to serving the needs of the poor in

terms of microfinance services;

(2) Rationalization of existing government programs

for credit and guarantee;

(3)

Utilization

of

existing

government

financial

entities for the provision of microfinance products and

services for the poor; and

(4)

Promotion

of

mechanisms necessary for the

implementation

of

microfinance

services,

including

indigenous microfinance practices.

Section

14.

People's

Credit

and

Finance

Corporation (PCFC) . – The People's Credit and Finance

Corporation

(PCFC),

a

government-

controlled

corporation registered with the Securities and Exchange

Commission

and

created

in

accordance

with

Administrative Order No. 148 and Memorandum Order

No.

261,

shall

be

the

vehicle

for

the

delivery

of

microfinance services for the exclusive use of the poor. As

a government-owned and -controlled corporation, it shall

be the lead government entity specifically tasked to

mobilize

financial

resources

from

both

local

and

international funding sources for microfinance services

for the exclusive use of the poor.

Section 15. Increase in the Capitalization of PCFC . –

To facilitate the increase in the capitalization of the PCFC,

the President of the Republic of the Philippines shall take

measures to enable the amendment of the Articles of

Incorporation of the PCFC such that:

(a) The authorized capital stock of the PCFC may be

increased

from

One

hundred

million

pesos

(P100,000,000.00)

to

Two

billion

pesos

(P2,000,000,000.00) divided into twenty million common

shares with a par value of One hundred pesos (P100.00)

per share;

(b) The subscribed capital stock may be increased

from One hundred million pesos (P100,000,000.00) to Six

hundred

million

pesos

(P600,000,000.00)

and

the

national government may subscribe the difference of Five

hundred million pesos (P500,000,000.00);

(c) The initial paid-up capital may be increased from

One hundred million pesos (P100,000,000.00) to Two

hundred

fifty

million pesos (P250,000,000.00), to be

increased subsequently to a total of Six hundred million

© Compiled By RGL

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