Creating The Philippine Foreign Loan Guarantee Corporation, Defining Its Powers And Duties And For The Other Purposes
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
Creating The Philippine Foreign Loan Guarantee Corporation, Defining Its Powers And Duties And For The Other Purposes
Presidential Decree No. 550
September 11, 1974
Case Overview and Summary
PRESIDENTIAL DECREE No. 550Creating the Philippine Foreign Loan Guarantee Corporation
- Purpose and Functions (Sections 2-3):
• Primary purpose is to guarantee foreign loans, in whole or in part, granted to domestic entities/enterprises/corporations majority-owned by Filipino citizens. (Section 2)
• Functions include promoting entry of foreign loans for development purposes, assisting domestic entities in coordinating development/expansion plans, and providing technical assistance. (Section 3)
- Corporate Powers (Sections 4-5):
• Authorized to make contracts, own property, sue/be sued, and perform necessary acts to carry out its purpose. (Section 4)
• Can borrow funds with Presidential approval, buy/sell securities, underwrite securities, invest funds, hold foreign assets, and establish rules/regulations. (Section 5)
- Operating Principles (Section 6):
• Facilitate foreign loan financing for specific projects, but can also guarantee loans from banks/institutions. (Section 6a)
• Consider borrower's ability to obtain guarantees elsewhere on reasonable terms. (Section 6b)
• Consider borrower's ability to meet loan obligations. (Section 6c)
• Receive suitable compensation for risk. (Section 6d)
• Ensure loan proceeds are used for intended purposes efficiently. (Section 6e)
• Guarantee limit of 15 times subscribed capital stock plus surplus. (Section 6f)
• Subrogation rights upon payment under guarantee. (Section 6g)
• Guided by sound banking and financial management principles. (Section 6h)
- Capital Stock and Funding (Sections 7-9):
• Initial authorized capital stock of 1 billion pesos, fully subscribed by Philippine government. (Section 7)
• Central Bank can grant loans/advances secured by acceptable assets. (Section 8)
• Obligations guaranteed by Philippine government. (Section 9)
- Board of Directors (Sections 10-13):
• 5-member Board composed of Secretary of Finance (Chairman), Corporation President (Vice-Chairman), Secretary of Industry, NEDA Director-General, and Solicitor General. (Section 10)
• Board formulates policies, issues rules/regulations, directs management, appoints personnel, and authorizes expenditures. (Section 11)
• Meets at least bi-weekly, with 3 members as quorum. (Section 12)
• Members receive 250 pesos per diem for attending meetings. (Section 13)
- President and Officials (Sections 14-17):
• President appointed by President of the Philippines for 6-year term, with minimum qualifications. (Section 14)
• President prepares agenda, executes policies, directs operations, and exercises vested powers. (Section 15)
• President's salary fixed by Board with Presidential approval, initially 60,000 pesos per annum. (Section 16)
• Other officials/employees appointed by Board on President's recommendation. (Section 17)
- Other Provisions (Sections 18-26):
• Other government offices/corporations to assist the Corporation. (Section 18)
• Commission on Audit Chairman as ex-officio Auditor, with representative as Corporation Auditor. (Section 19)
• Coordination with Central Bank, NEDA, and Board of Investments. (Section 20)
• Central Bank to provide foreign exchange for obligations. (Section 21)
• Subject to Central Bank supervision/examination and foreign exchange regulations. (Section 22-23)
• Tax exemptions for Corporation, assets, income, and transactions. (Section 24)
• Not subject to WAPCO standards/scales. (Section 25)
• Corporation Law and Civil Service Law apply if not inconsistent. (Section 26)
Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
Philippine Foreign Loan Guarantee Corporation
foreign loans
guarantee
domestic entities
development
expansion
export-oriented industries
Board of Investments
public utilities
government policy
capital stock
Central Bank
National Economic and Development Authority
Board of Directors
Secretary of Finance
Secretary of Industry
NEDA Director-General
Solicitor General
President
Commission on Audit
tax exemptions
foreign exchange regulations
Corporation Law
Civil Service Law
Law
Creating The Philippine Foreign Loan Guarantee Corporation, Defining Its Powers And Duties And For The Other Purposes
Presidential Decree No. 550
•September 11, 1974
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 550 September 11, 1974
CREATING THE PHILIPPINE FOREIGN LOAN GUARANTEE CORPORATION, DEFINING ITS POWERS AND DUTIES AND FOR THE OTHER PURPOSES
WHEREAS, there is a need to supplement existing domestic financial resources with borrowings from abroad in order to meet the country's economic development requirements;
WHEREAS, such foreign obligations contracted by the private sector may need to be adequately guaranteed by government financial institutions;
WHEREAS, the Development Bank of the Philippines, the Philippine National Bank, and the National Investment and Development Corporation are the only government financial institutions presently offering guarantee coverage to such foreign obligations incurred by the private sector;
WHEREAS, there is a felt need to expand the Philippine Government's guarantee coverage of foreign loans for the private sector in order to ensure the continuous entry of these resources into the economy;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby order and decree:
Section 1. Philippine Foreign Loan Guarantee...
Login to see full content
Amends
n/a
Amended by
n/a