WHEREAS,
the current economic crisis amounts to a grave emergency which affects
the stability of the nation and requires immediate action; chanroblesvirtualawlibrary
WHEREAS, the Republic of the Philippines as well as government-owned or
controlled corporations and/or government financial institutions such
as the Philippine National Bank, the Development Bank of the
Philippines and the Philippine Export and Foreign Loan Guarantee
Corporations have obtained various loans, relent substantial portion of
its proceeds, and have likewise extended guarantees on loans both of
the public and private sector to finance long-term economic and
development projects;chanroblesvirtualawlibrary
WHEREAS, due to certain constraint, contingent or otherwise, payments
on maturity schedules of relent and guaranteed loans sometimes could
not be made by loan end-users, and creditors make payment demands and
resort to calls on the guarantee of the Republic of the Philippines
either as primary obligor or as direct and indirect guarantor;chanroblesvirtualawlibrary
WHEREAS, to avoid cross default situations and to protect and maintain
the credit standing of the country, most specially in the international
community, the National Government makes prompt payments and/or
advances for all loans, including those relent and/or guaranteed by the
Republic of the Philippines, government-owned or controlled
corporations and/or government financial institutions;chanroblesvirtualawlibrary
WHEREAS, the issuance of this Decree is an essential and necessary
component of the National Recovery Program formulated to meet and
overcome the emergency.
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:cralaw:red
Section 1. There is hereby appropriated, out of any
funds in the National Treasury not otherwise appropriated, such amounts
as may be necessary to effect payments on foreign or domestic loans, or
foreign or domestic loans whereon creditors make a call on the direct
and indirect guarantee of the Republic of the Philippines, obtained by:cralaw:red
a. the Republic of the Philippines the proceeds of
which were relent to government-owned or controlled corporations and/or
government financial institutions;chanroblesvirtualawlibrary
b. government-owned or controlled corporations and/or
government financial institutions the proceeds of which were relent to
public or private institutions;chanroblesvirtualawlibrary
c. government-owned or controlled corporations and/or
financial institutions and guaranteed by the Republic of the
Philippines;chanroblesvirtualawlibrary
d. other public or private institutions and
guaranteed by government-owned or controlled corporations and/or
government financial institutions. chanroblesvirtualawlibrary
Section 2. All repayments made by borrower
institutions on the loans for whose account advances were made by the
National Treasury which revert to the General Fund.
Section 3. In the event that any borrower institution
is unable to settle the advances made out of the appropriation provided
herein, the Treasurer of the Philippines shall make the proper
recommendation to the Minister of Finance on whether such advances
shall be treated as equity or subsidy of the National Government to the
institution concerned, which shall be considered in the budgetary
program of the Government.
Section 4. The Minister of Finance shall issue
appropriate rules and regulations to implement this Decree.
Section 5. All laws, decrees, executive orders and
regulations contrary or inconsistent with the provisions of this Decree
are hereby repealed or amended accordingly.
Section 6. This Decree shall take effect
immediately. chanroblesvirtualawlibrary
DONE in the City of Manila,
this 11th day of January, in the year of Our Lord, nineteen hundred and
eighty-five.
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