Republic of the Philippines
Congress of the Philippines
Metro ManilaTenth Congress
Republic Act No. 8494 February 12, 1998
AN ACT FURTHER AMENDING PRESIDENTIAL DECREE NO. 1080, AS AMENDED, BY REORGANIZING AND RENAMING THE PHILIPPINE EXPORT AND FOREIGN LOAN GUARANTEE CORPORATION, EXPANDING ITS PRIMARY PURPOSES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. It shall be the policy of the State to encourage and promote the expansion of Philippine exports, and to establish a strong and credible export credit institutions which shall be dedicated to the provision of export financing facilities and services to support the country's export sector.
Section 2. Section 1 of Presidential Decree No. 1080, as amended, is hereby amended to read as follows:
"Section 1. Trade and Investment Development Corporation of the Philippines.
"a) There is hereby created a body corporate to be known as the Trade and Investment Development Corporation of the Philippines (TIDCORP), hereinafter referred to as the Corporation, which shall have succession...
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Republic Acts
AN ACT FURTHER AMENDING PRESIDENTIAL DECREE NO. 1080
Republic Act No. 8494
Summary of Republic Act No. 8494
Policy and Purpose (Sections 1-2):
- Encourage and promote expansion of Philippine exports.
- Establish a strong and credible export credit institution to provide export financing facilities and services.
- Reorganize and rename the Philippine Export and Foreign Loan Guarantee Corporation as the Trade and Investment Development Corporation of the Philippines (TIDCORP).
Primary Purposes of TIDCORP (Section 3):
- Guarantee approved foreign loans granted to entities in the Philippines, with Monetary Board's concurrence. (Section 2a)
- Guarantee Philippine banks against losses from: (Section 2b)
- Loans/credit to exporters, export producers, or contractors with approved service contracts abroad.
- Issuance of standby Letters of Credit or Guarantee for approved service contracts abroad, with Monetary Board's concurrence.
- Provide insurance cover, credits, and services to facilitate export of Philippine goods and services. (Section 2c)
- Guarantee or provide insurance cover for investments of entities in the Philippines. (Section 2d)
Functions of TIDCORP (Section 4):
- Promote and facilitate entry of foreign loans for development purposes, with focus on export-oriented industries, BOI-registered industries, public utilities, and government-encouraged industries. (Section 3a)
- Guarantee loans granted by Philippine banks to qualified exporters, export producers, and contractors with approved service contracts abroad. (Section 3b)
- Facilitate implementation of approved service contracts abroad by providing counter-guarantees to Philippine banks issuing standby Letters of Credit or Guarantee. (Section 3c)
- Assist domestic entities in coordinating development and expansion plans for better resource utilization. (Section 3d)
- Provide technical assistance in preparing, financing, and executing development or expansion programs, including project proposals. (Section 3e)
- Undertake actions consistent with TIDCORP's primary purposes. (Section 3f)
Borrowing and Other Powers (Section 5):
- Borrow funds in foreign countries or in the Philippines with the President's approval and Monetary Board's concurrence for foreign borrowings, subject to relevant laws and regulations. (Section 5a)
- Buy and sell securities issued or guaranteed by TIDCORP. (Section 5b)
- Underwrite or participate in underwriting securities issued by domestic entities for purposes consistent with TIDCORP's purpose. (Section 5c)
- Invest funds not needed in operations in government securities or double "A" rated debt instruments. (Section 5d)
- Exercise other necessary powers and establish rules and regulations to further TIDCORP's purpose and functions. (Section 5e)
Board of Directors (Section 6):
- Composed of 9 members:
- Secretary of Finance (Chairman)
- President of TIDCORP (Vice-Chairman)
- Secretary of Trade and Industry
- Governor of Bangko Sentral ng Pilipinas
- Director-General of NEDA
- Chairman of Philippine Overseas Construction Board
- 3 representatives from the private sector, at least 1 from the export community (2-year term)
Organizational Structure and Staffing (Section 7):
- Board to provide organizational structure and staffing pattern for TIDCORP officers and employees.
- Board to appoint and fix remuneration, emoluments, and fringe benefits upon recommendation of the President.
- Positions governed by a compensation and position classification system and qualification standards approved by the Board based on job analysis and audit.
- Compensation plan comparable to the private sector and subject to periodic review by the Board every 4 years, without prejudice to yearly merit reviews or increases based on productivity and profitability.
- TIDCORP exempt from existing laws, rules, and regulations on compensation, position classification, and qualification standards, but shall endeavor to conform to the principles and modes provided in Republic Act No. 6758.
Transition Provisions (Section 8):
- Incumbent personnel of the Philippine Export and Foreign Loan Guarantee Corporation to continue their duties and functions as TIDCORP personnel until reorganization is fully implemented, but not to exceed 1 year from the approval of this Act.
- Board authorized to provide separation benefits for those who cannot be accommodated in the new structure.
- Those who retire or are separated due to reorganization shall be entitled to incentives authorized by TIDCORP, in addition to gratuities and benefits under existing laws.
- All assets, liabilities, purposes, powers, functions, rights, obligations, claims, and interests of the Philippine Export and Foreign Loan Guarantee Corporation shall be transferred to TIDCORP upon effectivity of this Act.
Separability Clause (Section 9):
- If any provision is declared invalid or unconstitutional, the remaining provisions shall remain in force and effect.
Repealing Clause (Section 10):
- All laws, decrees, executive orders, rules and regulations, and other issuances or parts thereof inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity Clause (Section 11):
- This Act shall take effect 15 days from its publication in the Official Gazette or in at least two newspapers of general circulation, whichever comes earlier.
Policy and Purpose (Sections 1-2):
- Encourage and promote expansion of Philippine exports.
- Establish a strong and credible export credit institution to provide export financing facilities and services.
- Reorganize and rename the Philippine Export and Foreign Loan Guarantee Corporation as the Trade and Investment Development Corporation of the Philippines (TIDCORP).
Primary Purposes of TIDCORP (Section 3):
- Guarantee approved foreign loans granted to entities in the Philippines, with Monetary Board's concurrence. (Section 2a)
- Guarantee Philippine banks against losses from: (Section 2b)
- Loans/credit to exporters, export producers, or contractors with approved service contracts abroad.
- Issuance of standby Letters of Credit or Guarantee for approved service contracts abroad, with Monetary Board's concurrence.
- Provide insurance cover, credits, and services to facilitate export of Philippine goods and services. (Section 2c)
- Guarantee or provide insurance cover for investments of entities in the Philippines. (Section 2d)
Functions of TIDCORP (Section 4):
- Promote and facilitate entry of foreign loans for development purposes, with focus on export-oriented industries, BOI-registered industries, public utilities, and government-encouraged industries. (Section 3a)
- Guarantee loans granted by Philippine banks to qualified exporters, export producers, and contractors with approved service contracts abroad. (Section 3b)
- Facilitate implementation of approved service contracts abroad by providing counter-guarantees to Philippine banks issuing standby Letters of Credit or Guarantee. (Section 3c)
- Assist domestic entities in coordinating development and expansion plans for better resource utilization. (Section 3d)
- Provide technical assistance in preparing, financing, and executing development or expansion programs, including project proposals. (Section 3e)
- Undertake actions consistent with TIDCORP's primary purposes. (Section 3f)
Borrowing and Other Powers (Section 5):
- Borrow funds in foreign countries or in the Philippines with the President's approval and Monetary Board's concurrence for foreign borrowings, subject to relevant laws and regulations. (Section 5a)
- Buy and sell securities issued or guaranteed by TIDCORP. (Section 5b)
- Underwrite or participate in underwriting securities issued by domestic entities for purposes consistent with TIDCORP's purpose. (Section 5c)
- Invest funds not needed in operations in government securities or double "A" rated debt instruments. (Section 5d)
- Exercise other necessary powers and establish rules and regulations to further TIDCORP's purpose and functions. (Section 5e)
Board of Directors (Section 6):
- Composed of 9 members:
- Secretary of Finance (Chairman)
- President of TIDCORP (Vice-Chairman)
- Secretary of Trade and Industry
- Governor of Bangko Sentral ng Pilipinas
- Director-General of NEDA
- Chairman of Philippine Overseas Construction Board
- 3 representatives from the private sector, at least 1 from the export community (2-year term)
Organizational Structure and Staffing (Section 7):
- Board to provide organizational structure and staffing pattern for TIDCORP officers and employees.
- Board to appoint and fix remuneration, emoluments, and fringe benefits upon recommendation of the President.
- Positions governed by a compensation and position classification system and qualification standards approved by the Board based on job analysis and audit.
- Compensation plan comparable to the private sector and subject to periodic review by the Board every 4 years, without prejudice to yearly merit reviews or increases based on productivity and profitability.
- TIDCORP exempt from existing laws, rules, and regulations on compensation, position classification, and qualification standards, but shall endeavor to conform to the principles and modes provided in Republic Act No. 6758.
Transition Provisions (Section 8):
- Incumbent personnel of the Philippine Export and Foreign Loan Guarantee Corporation to continue their duties and functions as TIDCORP personnel until reorganization is fully implemented, but not to exceed 1 year from the approval of this Act.
- Board authorized to provide separation benefits for those who cannot be accommodated in the new structure.
- Those who retire or are separated due to reorganization shall be entitled to incentives authorized by TIDCORP, in addition to gratuities and benefits under existing laws.
- All assets, liabilities, purposes, powers, functions, rights, obligations, claims, and interests of the Philippine Export and Foreign Loan Guarantee Corporation shall be transferred to TIDCORP upon effectivity of this Act.
Separability Clause (Section 9):
- If any provision is declared invalid or unconstitutional, the remaining provisions shall remain in force and effect.
Repealing Clause (Section 10):
- All laws, decrees, executive orders, rules and regulations, and other issuances or parts thereof inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity Clause (Section 11):
- This Act shall take effect 15 days from its publication in the Official Gazette or in at least two newspapers of general circulation, whichever comes earlier.