A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1685
|
PRESIDENTIAL DECREE NO. 1685
- AMENDING PRESIDENTIAL DECREE NUMBERED THIRTEEN HUNDRED NINE
AUTHORIZING THE CENTRAL BANK OF THE PHILIPPINES TO ENGAGE IN
SPECIAL BORROWING AND LENDING OPERATIONS
|
chanroblesvirtualawlibrary
WHEREAS,
the Central Bank should be clothed with the necessary authority
to tap low-cost medium and long-term funds from international and
regional financial institutions for relending to approved
development projects; chanroblesvirtualawlibrary
WHEREAS, the availment of the funds obtained by the Central Bank
under the Consolidated Foreign Borrowings Program should be
easier by having more conduit financial institutions through
which said funds could be channeled and by liberalizing the
constraints on borrowings by government-owned or controlled
financial institutions.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the
Constitution, do hereby declare and order the amendment of
Presidential Decree No. 1309, as follows:cralaw:red
Section 1. Presidential Decree Numbered
Thirteen hundred nine is hereby amended by adding a new
section to be known as Section 1-A to read as follows:cralaw:red
"Sec 1-A. Foreign loans obtained by the Central
Bank from international or regional financial organizations of
which the Republic of the Philippines is a member may be
guaranteed by the Republic of the Philippines if required by
the charter, regulation or policy of the lender."
Section 2. Section 2 of the same Decree is
hereby amended to read as follows: chanroblesvirtualawlibrary
"Sec. 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 qualified banking and non-bank financial 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 and non-bank financial
institutions for relending, such funds to finance approved
projects; chanroblesvirtualawlibrary
"b. To finance Government development projects
for which financing from official development assistance (ODA)
sources can not be obtained; and
"c. To refinance existing foreign obligations
obtained at relatively more onerous terms."
Section 3. The same Decree is hereby amended by
adding a new section to be known as Section 3 to read as follows:cralaw:red
"Sec. 3. Notwithstanding the provisions of any
existing law to the contrary, the Central Bank may, at its
discretion, extend the proceeds of loans obtained under this
Decree to the Development Bank of the Philippines, the Land Bank
of the Philippines and other government-owned or controlled
banks whose borrowings are required under their respective
charters to be guaranteed by the Republic of the Philippines,
without the guaranty of the Republic of the Philippines and the
approval of the President of the Philippines: Provided,
That obligations of such government-owned or controlled
banks which are otherwise exempt from taxes imposed by the
Government or any of its subdivisions shall not lose their tax-exempt
status solely as a result of the absence of such Government
guaranty or approval by the President.
Section 4. The same Decree is hereby amended by
adding a new section to be known as Section 4 to read as follows:cralaw:red
"Sec. 4. The Monetary Board shall establish
safeguards as it may deem proper to prevent undue inflationary
effect of the lending operations of the Central Bank and shall
issue such rules and regulations as may be necessary to
implement this Decree and to insure a rational and
coordinated approach to the international capital markets."
Section 5. The same Decree is hereby amended by
renumbering Section 3 as Section 5.
Section 6. Any provision of law, decree, rules
and regulations inconsistent herewith are hereby repealed,
amended, or modified accordingly.
Section 7. This Decree shall take effect immediately.
DONE in the City of Manila,
this 17th day of March, in the year of Our Lord, nineteen hundred
and eighty.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|
