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PRESIDENTIAL DECREE NO. 1309
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PRESIDENTIAL DECREE NO. 1309 -
AUTHORIZING THE CENTRAL BANK OF THE PHILIPPINES TO ENGAGE IN SPECIAL
BORROWING AND LENDING OPERATIONS
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WHEREAS,
setting the foundation for long-term growth has been and still
continues to be the main thrust of the country's development
effort; chanroblesvirtualawlibrary
WHEREAS, substantial foreign financing at the least possible cost has
to be continuously provided to maintain the momentum of economic growth
that has already been established;chanroblesvirtualawlibrary
WHEREAS, this objective can best be realized through an integrated
approach, rather than individual uncoordinated approaches, to the
international capital markets;chanroblesvirtualawlibrary
WHEREAS, because of its unique position in the economy and its credit
standing in the international capital markets, the Central possesses
the negotiating leverage essential to this borrowing strategy;chanroblesvirtualawlibrary
WHEREAS, it is necessary to afford the Central Bank greater flexibility
in its actions to enable it to undertake the borrowing and lending
operations required to achieve this objective.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order:cralaw:red
Section 1. The Central Bank is hereby authorized to
borrow from foreign banks and other foreign or international agencies,
both public and private, for the purpose of financing the special
credit operations described in Sec. 2 hereof.
Section 2. Under special circumstances where the
Monetary Board deems it in the national interest, and notwithstanding
the provisions of any existing law to the contrary, the Central Bank
may grant loans to the Government or to banking institutions from the
proceeds of foreign loans obtained by it subject to such terms and
conditions as the Monetary Board may prescribe, for the following and
analogous purposes:cralaw:red
a. To lend to banking institutions for relending such
funds as may be required to finance approved projects;chanroblesvirtualawlibrary
b. To finance Government development projects for
which financing from official development assistance (ODA) sources
cannot be obtained; and
c. To refinance existing foreign obligations obtained
at relatively more onerous terms.
The Monetary Board shall establish safeguards as it may deem proper to
prevent undue inflationary effects of the above-mentioned lending
operations and shall issue such rules and regulations as may be
necessary to insure a rational and coordinated approach to the
international capital markets. chanroblesvirtualawlibrary
Section 3. This Decree shall take effect immediately.
DONE in the City of
Manila, this 3rd day of March, in the year of Our Lord, nineteen
hundred and seventy-eight.
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