Section 2Sec./Art. 2

Declaration of Policy.- It shall be the policy of the State to accelerate the flow of investments and credit resources into the countryside so as to trigger the vigorous growth and development of rural productivity, employment and enterprises thereby generating more livelihood and income opportunities for the disadvantaged rural populace. Pursuant to this policy, there shall be set up a convenient credit-support mechanism and reliable guarantee system that shall effectively:

a. Improve the bankability of and access by rural workers, their cooperatives and small rural enterprises to formal credit institutions;

b. Provide incentives for the banking sector to focus upon and enlarge the flow of credit funds and investments into the rural areas;

c. Institutionalize the quedan or warehouse receipt and other negotiable instruments, evidencing stored agri-aqua produce in bonded warehouses, as the more convenient collateral for obtaining credit financing;

d. Prioritize financing support to agrarian reform beneficiaries and their cooperatives for their production inputs and labor costs and their acquisition of farm equipment and post-harvest facilities;

e. Support dynamic cooperativism, capital formation and savings mobilization among the rural populace;

f. Increase farm income by promoting a system that by-passes unnecessary layers of middlemen and links producers more closely to end-users through auction markets, trading centers, consumer cooperatives and the like; and

g. Harmonize and coordinate with all government institutions, nongovernmental organizations, private voluntary organizations, self-help groups and other aggrupations involved in providing support services to rural inhabitants.