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Presidential Decrees

Appropriating Funds For The Payment Of The Remaining Balance Of The Unpaid Subscription Of The Government To The Capital Stock Of The Development Bank Of The Philippines

Presidential Decree No. 811

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 811 October 17, 1975

APPROPRIATING FUNDS FOR THE PAYMENT OF THE REMAINING BALANCE OF THE UNPAID SUBSCRIPTION OF THE GOVERNMENT TO THE CAPITAL STOCK OF THE DEVELOPMENT BANK OF THE PHILIPPINES

WHEREAS, in line with the objective of rapid economic growth, it is necessary for the Government to provide massive credit financing for the development and expansion of industry and agriculture;

WHEREAS, the Development Bank of the Philippines is the primary agency of the Government which provides credit facilities for economic development purposes;

WHEREAS, under its Charter (Republic Act No. 2081, as amended) the Development Bank of the Philippines has an authorized capital of P3 billion fully subscribed by the Government, of which P1.8 billion has been paid and except for the conversion of 20% of the Bank's annual net income there is no provision for continuous payment of the Government' subscription;

WHEREAS, the Development Bank of the Philippines is being called upon to meet the funding requirements of high...

Summary of Presidential Decree No. 811

Objective: Provide massive credit financing for industrial and agricultural development through the Development Bank of the Philippines (DBP).

Background:
- DBP is the primary government agency for providing credit facilities for economic development.
- DBP has an authorized capital of P3 billion, fully subscribed by the government.
- P1.8 billion has been paid, and 20% of DBP's annual net income is converted for payment.
- Existing provisions are insufficient for DBP to increase resources for funding priority projects.

Provisions:
- Section 1 (e) is inserted into Section 3 of R.A. 2081 (DBP's Charter):
    - The remaining unpaid government subscription to DBP's capital stock shall be paid from the National Treasury funds, tax collections, or proceeds from loans, bonds, treasury bills, or notes.
    - Payment schedule:
        - P400 million in FY 1975-76 (Section 1 (e))
        - P350 million in FY 1976-77 (Section 1 (e))
        - P150 million in FY 1977-78 (Section 1 (e))
        - P100 million in FY 1978-79 (Section 1 (e))
        - P100 million in FY 1979-80 (Section 1 (e))
        - P100 million in FY 1980-81 (Section 1 (e))
- Section 2: The Decree takes effect immediately.

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