The farmer and the bank: Why CONFED urges Sec. Dominguez to slow down on UCPB

ALMOST half a century ago in this country, there was the coconut levy—a special tax or forcible contribution deducted from the first sale of copra imposed by government through several presidential decrees (PDs), which were implemented from 1972 to 1982. These levies or special taxes were shouldered by all coconut farmers, including tenants and farm workers.

Using some of these levy funds and by order of law (PD 755), a government agency (Philippine Coconut Authority or PCA) purchased an existing bank (First United Bank or FUB) in July 1975 and, from it, established a “new” bank purposely and, quite explicitly, to fulfill the coconut farmers’ financial commitments. The new bank was named the United Coconut Planters Bank or UCPB.