MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1785
CREATING THE EXPORT CREDIT CORPORATION, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES
WHEREAS, the Government encourages, promotes, and develops the export of goods and services, and the establishment and operation of private enterprises engaged in the manufacture of capital goods;
WHEREAS, the development of the export and capital goods industry is hampered by the lack of proper credit, guarantee, and insurance facilities at rates and on terms and conditions which will place the nation's exports at a competitive level in the international market and will enable local industries to manufacture capital goods, likewise at levels competitive with imported goods and services.
WHEREAS, there is a need to establish a government-owned or controlled corporation to provide the required credit, guarantee, and insurance facilities at preferential rates and on liberal terms and conditions;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree...
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Presidential Decrees
Creating The Export Credit Corporation, Defining Its Powers And Functions, Providing Funds Therefor, And For Other Purposes
Presidential Decree No. 1785
Summary of Presidential Decree No. 1785 (Charter of the Export Credit Corporation)
Declaration of Policy (Section 2):
- The State aims to encourage, promote and develop the export of manufactured goods, products and services by extending credits, guarantees, and insurance coverage at competitive rates.
- This is to attain higher production and employment, increase foreign exchange earnings, improve balance of payments, accelerate economic growth, and secure benefits for Filipinos.
Creation and Purpose (Sections 3-4):
- Creates the Export Credit Corporation as a body corporate with principal office in Metro Manila and 50-year term.
- Purposes:
- Promote and develop the export of goods and services. (Section 4a)
- Foster the development of capital goods industry. (Section 4b)
- Provide facilities for granting direct credits, loans, financial guarantees and insurance coverage to exporters and financial institutions for export financing at competitive rates. (Section 4c)
Powers and Functions (Section 5):
- Extend direct loans or credit facilities in Philippine or foreign currency for financing export contracts, foreign trade transactions, and sale of domestically manufactured capital goods at competitive rates. (Section 5a)
- Give guarantees covering political and commercial risks to entities engaged in export, manufacturing, services, except performance guarantees. (Section 5b)
- Make grants or subsidies to supplement interest received by entities providing export financing facilities. (Section 5c)
- Insure against risks like war, expropriation, remittance restrictions for export contracts. (Section 5d)
- Act as agent for export contracts or transactions. (Section 5e)
- Issue bonds and borrow money from local/foreign sources. (Section 5f)
- Invest funds in export, import-substitution activities, and government bonds/securities. (Section 5g)
- Purchase, hold, alienate shares/bonds of other corporations. (Section 5h)
- Acquire and dispose assets for business conduct. (Section 5i)
- Determine organizational structure, salaries of officers/employees. (Section 5j)
- Establish offices, branches, subsidiaries within/outside Philippines. (Section 5k)
- Adopt by-laws, delegate business to the President, fix remuneration. (Section 5l)
- Sue and be sued. (Section 5m)
- Adopt and use corporate seal. (Section 5n)
- Perform necessary acts for attaining objectives. (Section 5o)
- Promulgate necessary rules and regulations. (Section 5p)
- Perform other functions provided by law. (Section 5q)
Restriction (Section 6):
- The Corporation cannot perform commercial banking functions, except as provided.
Capital Stock (Section 7):
- Authorized capital stock of ₱10 billion divided into 10 million shares at ₱100,000 par value per share.
- ₱200 million initially subscribed and paid by the Philippine government.
- Remaining shares may be subscribed by the government or government financial institutions.
Governing Body (Section 8):
- 11-member Board of Directors composed of:
- Minister of Finance (Chairman)
- Minister of Industry (Vice Chairman)
- Minister of Trade
- NEDA Director General
- Minister of Budget
- Solicitor General
- BSP Governor
- DBP Chairman
- PNB Chairman
- Corporation President (appointed by President for 5 years)
- Private sector representative (appointed by President for 5 years)
President's Duties (Section 9):
- Prepare Board agenda and submit policies/measures.
- Execute, administer and implement Board-approved policies.
- Direct and supervise operations and administration.
- Represent the Corporation in dealings with government and other entities.
- Exercise other powers and duties vested by the Board.
Loans and Indebtedness (Section 10):
- Authorized to contract loans, credits in foreign currency, and incur indebtedness from foreign governments, international financial institutions, or other entities.
- The Philippine government may guarantee the payment of loans and performance of obligations.
Bond Issuance (Section 11):
- Authorized to issue bonds or securities in Philippine or foreign currency, which may be government-guaranteed, to finance export and capital goods industries upon recommendation of Finance Minister and approval of the President.
General Counsel (Section 12):
- Solicitor General shall perform duties of General Counsel and receive allowances fixed by the Board.
Privileges and Incentives (Section 13):
- Entitled to privileges and incentives granted to private export and capital goods industries.
- Other government offices and corporations shall extend assistance, including detail of officials/employees.
- Employees entitled to government retirement, insurance benefits and leave privileges.
Tax Exemptions (Section 14):
- Exempt from all taxes, duties, fees, imposts and charges imposed by the Philippine government, except corporate income tax.
Exemption from Civil Service Law (Section 15):
- Officers and employees not subject to Civil Service Law and Wage and Position Classification Office regulations.
Non-Applicability of Certain Laws (Section 16):
- Usury Law, Uniform Currency Law, and certain provisions of the Insurance Code shall not apply to the Corporation's operations and activities.
Access to Central Bank Rediscounting (Section 17):
- The Corporation shall have access to Central Bank rediscounting facilities under the most favorable terms.
Appropriations (Section 18):
- ₱200 million appropriated from General Funds for initial funding requirements.
Reporting (Section 19):
- Submit annual report to the President within 3 months after fiscal year end.
- Submit other periodic reports as required.
Separability Clause (Section 20), Repealing Clause (Section 21), Effectivity (Section 22)
Declaration of Policy (Section 2):
- The State aims to encourage, promote and develop the export of manufactured goods, products and services by extending credits, guarantees, and insurance coverage at competitive rates.
- This is to attain higher production and employment, increase foreign exchange earnings, improve balance of payments, accelerate economic growth, and secure benefits for Filipinos.
Creation and Purpose (Sections 3-4):
- Creates the Export Credit Corporation as a body corporate with principal office in Metro Manila and 50-year term.
- Purposes:
- Promote and develop the export of goods and services. (Section 4a)
- Foster the development of capital goods industry. (Section 4b)
- Provide facilities for granting direct credits, loans, financial guarantees and insurance coverage to exporters and financial institutions for export financing at competitive rates. (Section 4c)
Powers and Functions (Section 5):
- Extend direct loans or credit facilities in Philippine or foreign currency for financing export contracts, foreign trade transactions, and sale of domestically manufactured capital goods at competitive rates. (Section 5a)
- Give guarantees covering political and commercial risks to entities engaged in export, manufacturing, services, except performance guarantees. (Section 5b)
- Make grants or subsidies to supplement interest received by entities providing export financing facilities. (Section 5c)
- Insure against risks like war, expropriation, remittance restrictions for export contracts. (Section 5d)
- Act as agent for export contracts or transactions. (Section 5e)
- Issue bonds and borrow money from local/foreign sources. (Section 5f)
- Invest funds in export, import-substitution activities, and government bonds/securities. (Section 5g)
- Purchase, hold, alienate shares/bonds of other corporations. (Section 5h)
- Acquire and dispose assets for business conduct. (Section 5i)
- Determine organizational structure, salaries of officers/employees. (Section 5j)
- Establish offices, branches, subsidiaries within/outside Philippines. (Section 5k)
- Adopt by-laws, delegate business to the President, fix remuneration. (Section 5l)
- Sue and be sued. (Section 5m)
- Adopt and use corporate seal. (Section 5n)
- Perform necessary acts for attaining objectives. (Section 5o)
- Promulgate necessary rules and regulations. (Section 5p)
- Perform other functions provided by law. (Section 5q)
Restriction (Section 6):
- The Corporation cannot perform commercial banking functions, except as provided.
Capital Stock (Section 7):
- Authorized capital stock of ₱10 billion divided into 10 million shares at ₱100,000 par value per share.
- ₱200 million initially subscribed and paid by the Philippine government.
- Remaining shares may be subscribed by the government or government financial institutions.
Governing Body (Section 8):
- 11-member Board of Directors composed of:
- Minister of Finance (Chairman)
- Minister of Industry (Vice Chairman)
- Minister of Trade
- NEDA Director General
- Minister of Budget
- Solicitor General
- BSP Governor
- DBP Chairman
- PNB Chairman
- Corporation President (appointed by President for 5 years)
- Private sector representative (appointed by President for 5 years)
President's Duties (Section 9):
- Prepare Board agenda and submit policies/measures.
- Execute, administer and implement Board-approved policies.
- Direct and supervise operations and administration.
- Represent the Corporation in dealings with government and other entities.
- Exercise other powers and duties vested by the Board.
Loans and Indebtedness (Section 10):
- Authorized to contract loans, credits in foreign currency, and incur indebtedness from foreign governments, international financial institutions, or other entities.
- The Philippine government may guarantee the payment of loans and performance of obligations.
Bond Issuance (Section 11):
- Authorized to issue bonds or securities in Philippine or foreign currency, which may be government-guaranteed, to finance export and capital goods industries upon recommendation of Finance Minister and approval of the President.
General Counsel (Section 12):
- Solicitor General shall perform duties of General Counsel and receive allowances fixed by the Board.
Privileges and Incentives (Section 13):
- Entitled to privileges and incentives granted to private export and capital goods industries.
- Other government offices and corporations shall extend assistance, including detail of officials/employees.
- Employees entitled to government retirement, insurance benefits and leave privileges.
Tax Exemptions (Section 14):
- Exempt from all taxes, duties, fees, imposts and charges imposed by the Philippine government, except corporate income tax.
Exemption from Civil Service Law (Section 15):
- Officers and employees not subject to Civil Service Law and Wage and Position Classification Office regulations.
Non-Applicability of Certain Laws (Section 16):
- Usury Law, Uniform Currency Law, and certain provisions of the Insurance Code shall not apply to the Corporation's operations and activities.
Access to Central Bank Rediscounting (Section 17):
- The Corporation shall have access to Central Bank rediscounting facilities under the most favorable terms.
Appropriations (Section 18):
- ₱200 million appropriated from General Funds for initial funding requirements.
Reporting (Section 19):
- Submit annual report to the President within 3 months after fiscal year end.
- Submit other periodic reports as required.
Separability Clause (Section 20), Repealing Clause (Section 21), Effectivity (Section 22)