Authorizing the Payment of Reasonable Incentive Fees To Foreign Banks, Investment Banks and Other Financial Institutions Participating in the Debt-To-Equity Conversion Program And/Or the Privatization Scheme of the Philippine Government and Providing Funds Therefor

EXECUTIVE ORDER NO. 290 July 25, 1987

AUTHORIZING THE PAYMENT OF REASONABLE INCENTIVE FEES TO FOREIGN BANKS, INVESTMENT BANKS AND OTHER FINANCIAL INSTITUTIONS PARTICIPATING IN THE DEBT-TO-EQUITY CONVERSION PROGRAM AND/OR THE PRIVATIZATION SCHEME OF THE PHILIPPINE GOVERNMENT AND PROVIDING FUNDS THEREFOR

WHEREAS, it is the objective of the Government to bring about economic recovery as early as possible to achieve growth and stability throughout the country;

WHEREAS, to gain this objective, the Government realizes the immediate need to promote and foster renewed foreign investment and for this purpose has encouraged proposals from international investment counselors;

WHEREAS, in response to the foregoing, certain foreign banks, investment banks and other financial institutions have initiated moves and in fact have adopted, certain concrete measures to encourage investments via the debt-to-equity conversion program and/or the privatization scheme of the Philippine Government;

WHEREAS, in consideration of the services to be rendered by the said foreign banks, investment banks, and other financial institutions, the Government may agree to provide reasonable incentive fees under certain terms and...

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Summary of Executive Order No. 290

Objective of the Law
• To bring about economic recovery and achieve growth and stability in the country. (Whereas clause)
• To promote and foster renewed foreign investment. (Whereas clause)

Provisions of the Law
• The Department of Finance, in coordination with the Central Bank of the Philippines, is authorized to pay reasonable incentive fees to foreign banks, investment banks, and other financial institutions. (Section 1)
• The incentive fees are for services rendered in support of programs that encourage foreign investments through the debt-to-equity conversion program and/or the privatization scheme of the Philippine Government. (Section 1)
• The funds for paying the incentive fees shall be taken from the proceeds realized under Schedules 4 and 5 of Central Bank Circular No. 1111, dated August 4, 1986. (Section 2)
• The Executive Order took effect immediately upon issuance on July 25, 1987. (Section 3)