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This page features the full text of
Republic Act No. 4860
AN
ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO OBTAIN SUCH FOREIGN
LOANS AND CREDITS, OR TO INCUR SUCH FOREIGN INDEBTEDNESS, AS MAY BE
NECESSARY
TO FINANCE APPROVED ECONOMIC DEVELOPMENT PURPOSES OR PROJECTS, AND TO
GUARANTEE,
IN BEHALF OF THE REPUBLIC OF THE PHILIPPINES, FOREIGN LOANS OBTAINED OR
BONDS ISSUED BY CORPORATIONS OWNED OR CONTROLLED BY THE GOVERNMENT OF
THE
PHILIPPINES FOR ECONOMIC DEVELOPMENT PURPOSES INCLUDING THOSE INCURRED
FOR PURPOSES OF RE-LENDING TO THE PRIVATE SECTOR, APPROPRIATING THE
NECESSARY
FUNDS THEREFOR, AND FOR OTHER PURPOSES.
..
REPUBLIC
ACT NO. 4860 AN
ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO OBTAIN SUCH FOREIGN
LOANS AND CREDITS, OR TO INCUR SUCH FOREIGN INDEBTEDNESS, AS MAY BE
NECESSARY
TO FINANCE APPROVED ECONOMIC DEVELOPMENT PURPOSES OR PROJECTS, AND TO
GUARANTEE,
IN BEHALF OF THE REPUBLIC OF THE PHILIPPINES, FOREIGN LOANS OBTAINED OR
BONDS ISSUED BY CORPORATIONS OWNED OR CONTROLLED BY THE GOVERNMENT OF
THE
PHILIPPINES FOR ECONOMIC DEVELOPMENT PURPOSES INCLUDING THOSE INCURRED
FOR PURPOSES OF RE-LENDING TO THE PRIVATE SECTOR, APPROPRIATING THE
NECESSARY
FUNDS THEREFOR, AND FOR OTHER PURPOSES.
SECTION
1. The President of the Philippines
is hereby authorized in behalf of the Republic of the Philippines to
contract
such loans, credits and indebtedness with foreign governments, agencies
or instrumentalities of such foreign governments, foreign financial
institutions,
or other international organizations, with whom, or belonging to
countries
with which, the Philippines has diplomatic relations, as may be
necessary
and upon such terms and conditions as may be agreed upon, to enable the
Government of the Republic of the Philippines to finance, either
directly
or through any government office, agency or instrumentality or any
government-owned
or controlled corporation, industrial, agricultural or other economic
development
purposes or projects authorized by law: Provided, That at least
seventy-five per cent shall be spent for purposes or projects which are
revenue-producing and self-liquidating, such as electrification,
irrigation,
river control and drainage, telecommunication, housing, construction
and
improvement of highways and bridges, airports, ports and harbors,
school
buildings, waterworks and artesian wells, air navigation facilities,
development
of fishing industry, and others: Provided, That such foreign
loans
shall be used to meet the foreign exchange requirements or liabilities
incurred in connection with said development projects to cover the cost
of equipment, related technical services and supplies, where the same
are
not obtainable within the Philippines at competitive prices as well as
part of the pesos costs, other than working capital and operational
expenses
not exceeding twenty per cent of the loan: Provided, further,
That
in the case of roads, bridges, irrigation, portworks, river control,
airports,
and power, the amount shall not exceed seventy per cent of the loan.
The
authority of the President of the Philippines as herein provided shall
include the power to issue, for the purposes hereinbefore stated, bonds
for sale in the international markets the income from which shall be
fully
tax-exempt in the Philippines.cralaw:red
Sec.
2. The total amount of loans,
credit and indebtedness, excluding interests, which the President of
the
Philippines is authorized to incur under this Act shall not exceed one
billion United States dollars or its equivalent in other foreign
currencies
at the exchange rate prevailing at the time the loans, credits and
indebtedness
are incurred: Provided, however, That the total loans, credits and
indebtedness
incurred under this Act shall not exceed two hundred fifty million in
the
fiscal year of the approval of this Act, and two hundred fifty million
every fiscal year thereafter, all in United States dollars or its
equivalent
in other currencies.cralaw:red
All
loans, credits and indebtedness under the preceding section shall be
incurred
only for particular projects in accordance with the approved economic
program
of the Government and after the plans of such projects shall have been
prepared by the offices or agencies concerned, recommended by the
National
Economic Council and the Monetary Board of the Central Bank of the
Philippines,
and approved by the President of the Philippines.cralaw:red
Sec.
3. The President of the Philippines
is, likewise, hereby authorized, in behalf of the Republic of the
Philippines,
to guarantee, upon such terms and conditions as may be agreed upon,
foreign
loans extended directly to, or bonds for sale in international markets
issued by, corporations owned or controlled by the Government of the
Philippines
for industrial, agricultural or other economic development purposes or
projects authorized by law, such as those mentioned in Section one of
this
Act, including the rehabilitation and modernization of the Philippine
National
Railways, the cash capital requirements of the Land Bank,
electrification,
irrigation, river control and drainage, telecommunication, housing,
construction
and/or improvement of highways, airports, ports and harbors, school
buildings,
waterworks and artesian wells, air navigation, development of the
fishing
industry, iron and nickel exploitation and development, and others: Provided,
That at least seventy-five per cent shall be spent for purposes or
projects
which are revenue-producing and self-liquidating. The loans and/or
bonded
indebtedness of government-owned or controlled corporations which may
be
guaranteed by the President under this Act shall include those incurred
by government-owned or controlled financial institutions for the
purpose
of re-lending to the private sector and the total amount thereof shall
not be more than five hundred million United States dollars or its
equivalent
in other foreign currencies at the exchange rate prevailing at the time
the guarantee is made: Provided, That the government-owned or
controlled
financial institutions shall relend the proceeds of such loans and/or
or
bonded indebtedness to Filipinos or to Filipino-owned or controlled
corporations
and partnerships, at least sixty-six and two-thirds per centum of the
outstanding
and paid-up capital of which is held by Filipino at the time the loan
is
incurred, such proportion to be maintained until such time as the loan
is fully paid: Provided, however, That during anytime that any
amount
of the loan remains outstanding, failure to meet with the capital
ownership
requirement shall make the entire loan immediately due and demandable,
together with all penalties and interests, plus an additional special
penalty
of two per centum on the total amount due.cralaw:red
Sec.
4. The implementation of this
Act shall be subject to, and governed by, the provisions of Executive
Order
No. 236, dated February 13, 1957, prescribing procedures for the
planning
of development finances, the issuance of government securities, and the
disbursement of proceeds, and creating the Fiscal Policy Council and
the
Technical Committee on Development Finance, as amended by Executive
Order
No. 26, dated May 26, 1966, not inconsistent with this Act, which are
hereby
adopted by reference and made an integral part of this Act.
Sec.
5. It shall be the duty of the
President, within thirty days after the opening of every regular
session,
to report to the Congress the amount of loans, credits and indebtedness
contracted, as well as the guarantees extended, and the purposes and
projects
for which the loans, credits and indebtedness were incurred, and the
guarantees
extended, as well as such loans which may be reloaned to Filipino-owned
or controlled corporations and similar purposes.cralaw:red
Sec.
6. The Congress shall appropriate
the necessary amount out of any funds in the National Treasury not
otherwise
appropriated, to cover the payment of the principal and interest on
such
loans, credits or indebtedness as and when they shall become due.
Sec.
7. This Act shall take effect
upon its approval.
Approved:
August 8, 1966
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