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PRESIDENTIAL DECREE NO. 2000
PRESIDENTIAL DECREE NO. 2000 - AN
ACT CREATING THE PRIVATE DEBT RESTRUCTURING AND REPAYMENT CORPORATION
DEFINING ITS POWERS AND FOR OTHER PURPOSES
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chanroblesvirtualawlibrary
WHEREAS, it
is a declared objective of the Government of the Republic of the
Philippines to ensure the viability of the private corporate sector;chanroblesvirtualawlibrary
WHEREAS, there is an imperative need to adopt and implement a program
for the repayment of foreign currency debt obligations owned by
Philippine private corporate sector borrowers in a manner consistent
with the continuing viability of such companies and supportive of the
Philippine economic recovery program;chanroblesvirtualawlibrary
WHEREAS, it is recognized that such repayment program must essentially
provide a system under which foreign exchange risk protection is
furnished with respect to current and future maturities of private
corporate sector foreign currency debt;chanroblesvirtualawlibrary
WHEREAS, the Central bank of the Philippines has been authorized under
Presidential Decree No. 1961 in connection with the restructuring of
Philippine foreign currency debt to adopt and implement, directly or
through a subsidiary, a foreign exchange risk protection
program. chanroblesvirtualawlibrary
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. Corporate Body. — There is hereby created
a body corporate to be known as the Private Debt Restructuring and
Repayment Corporation, hereinafter referred to as the "Corporation".
Section 2. Principal Office. — The Corporation shall
have its principal office in Metropolitan Manila, Philippines, and may
have such branches elsewhere in the Philippines as may be necessary or
proper for the attainment of its objectives. chanroblesvirtualawlibrary
Section 3. Capitalization. — The Corporation shall
have an authorized capital of Two Billion Pesos (P2,000,000,000.00) of
which Five Hundred Million Pesos (P500,000,000.00) shall be initially
subscribed and Twenty Five Million Pesos (P25,000,000.00) paid for by
the Central Bank of the Philippines.
Section 4. Responsibilities and Objectives. — It
shall be the responsibility of the Corporation to administer the
program for the rescheduling and repayment of the foreign currency debt
of the private corporate sector.
It shall be the duty of the Corporation to use the powers granted to it
under this Decree to achieve the following principal objectives:cralaw:red
(a) To provide Philippine private corporate sector
borrowers and their sectors with flexible options for the repayment of
outstanding foreign currency debt in a manner consistent with the
continuing financial viability and the debt service capability of these
companies;chanroblesvirtualawlibrary
(b) To provide forward exchange protection to
corporations that wish to avail themselves of such cover; and
(c) To assist Central Bank in managing the outflow of
foreign exchange from the Philippines consistent with the Government
economic adjustment program.
Section 5. Corporate Powers. — The Corporation shall
have the following powers and functions:cralaw:red
(a) To enter into forward exchange transactions or
any other transaction with any domestic non-financial entity,
enterprise or corporation duly registered and/or licensed under the
laws of the Republic of the Philippines which will enable said entity,
enterprise or corporation to foreign exchange risk associated with any
of its foreign currency-denominated restructured debt;chanroblesvirtualawlibrary
(b) To extend peso-denominated loans to any such
domestic non-financial entity, enterprise or corporation the proceeds
of which shall be utilized solely for the purpose of settling its
restructured foreign currency-denominated debt;chanroblesvirtualawlibrary
(c) To obtain or arrange for borrowings from domestic
or foreign sources as may be necessary and whenever warranted;chanroblesvirtualawlibrary
(d) To buy, sell and deal in foreign exchange;chanroblesvirtualawlibrary
(e) To make contracts;chanroblesvirtualawlibrary
(f) To lease or own real and personal property and to
sell, mortgage or otherwise dispose of the same;chanroblesvirtualawlibrary
(g) To use and be sued;chanroblesvirtualawlibrary
(h) To adopt, alter, and use a corporate seal;chanroblesvirtualawlibrary
(i) To invest funds not needed in its operations; and
(j) To exercise the general power of a corporation
mentioned in the Corporation Code of the Philippines insofar as they
are not inconsistent with the provisions of this Decree and otherwise
to do and perform any and all things necessary or proper to accomplish
the objectives of this Decree, or essential to the proper conduct of
the operations of the Corporation, or as may be directed by the
President of the Philippines. chanroblesvirtualawlibrary
Section 6. Foreign Borrowings. — The Corporation may
contract foreign currency loans, credits or indebtedness with the
guarantee of the Republic of the Philippines, upon such terms as may be
agreed with the lenders, subject to the concurrence, general or
specific, of the Monetary Board and further to the final approval of
the President of the Philippines.
Section 7. Exchange Profits and Losses. — All
foreign exchange profits and losses which may arise from the forward
exchange operations and other foreign exchange transactions of the
Corporation shall be chargeable against the revaluation account of the
Central Bank in accordance with Republic Act No. 265, as amended.
Section 8. Board of Directors. — The powers and
authority of the Corporation shall be vested in, and exercised by a
Board of Directors, hereinafter referred to as the "Board", consisting
of the Governor, Central Bank of the Philippines, as ex-officio
Chairman, a Vice-Chairman and five other members. The Chairman of the
Development Bank of the Philippines, the President of the Philippine
National Bank, and two members from the Monetary Board to be designated
by the Monetary Board, shall be ex-officio members of the Board. Two
other members from the government private sector shall be appointed by
the President of the Philippines. The appointive members of the Board
shall serve for a period of one year from the date of appointment and
until their respective successors shall have been duly appointed and
have qualified. The members of the Board shall elect from among
themselves the Vice-Chairman.
In case of death, resignation, removal, or disqualification of the
Vice-Chairman or any member of the Board, the successor or successors
to hold office only for the unexpected portion of the term. chanroblesvirtualawlibrary
Section 9. Powers of the Board. — The Board shall
have the following powers:cralaw:red
(a) To promulgate policies to carry out effectively
the provisions of this Decree, subject to the approval of the President
of the Philippines;chanroblesvirtualawlibrary
(b) To prepare and issue rules and regulations as it
considers necessary for the effective discharge of the responsibilities
and exercise of the powers assigned to the Corporation under this
Decree;chanroblesvirtualawlibrary
(c) To direct the management, operations, and
administration of the Corporation;chanroblesvirtualawlibrary
(d) To authorize such expenditures by the Corporation
as are in the interest of the effective administration and operations
of the Corporation; and chanroblesvirtualawlibrary
(e) To exercise such other powers as may be necessary
to accomplish the purposes for which the Corporation was organized.
Section 10. Meetings. — The Board shall meet
regularly at least once a month at the office of the Corporation,
unless otherwise determined by the Board. Special meetings of the Board
shall be held whenever so requested by the Chairman or on the written
request of two (2) directors.
Section 11. Remuneration of Members of Attending
Meetings of the Board. — The members of the Board shall be entitled to
per diems for every meeting actually attended in such amount as the
Board may deem appropriate but not exceeding five hundred pesos
(P500.00) per meeting nor two thousand pesos (P2,000.00) for any single
month.
Section 12. Officers and other Personnel. — The
officers of the Corporation shall be a Chairman, a Vice-Chairman, a
General Manager and a Deputy General Manager. The General Manager, the
Deputy General Manager and all other officers and employees of the
Corporation shall be appointed by the Chairman, with the confirmation
of the Board. The Central Bank may assign any Central Bank official or
employee to the Corporation on detail: Provided, That such assignment
of any Central Bank official or employee to the Corporation shall be
deemed to be in the interest of the service and not disciplinary, and
provision of existing law to the contrary notwithstanding: Provided,
further, That the assignment of such Central Bank officials and
employees shall not suspend or interrupt the continuity of their
services with the Central Bank. The remuneration and other emoluments
of officers and employees of the Corporation shall be fixed by the
Board. Central Bank officials and employees detailed to the Corporation
shall continue to receive the remuneration and other emoluments to
which such officials and employees are entitled to receive as such from
Central Bank: provided, That Central Bank officials and employees so
detailed shall not receive any additional compensation from the
Corporation: Provided, further, That the Corporation shall pay directly
or reimburse the Central Bank the remuneration and emoluments of
Central Bank officials and employees detailed to the
Corporation. chanroblesvirtualawlibrary
Section 13. Chairman. — Chairman shall preside at all
meetings of the Board. He shall submit to the President of the
Philippines quarterly reports regarding the activities and operations
of the Corporation and containing such information relating to the
proceedings and policies of the Corporation.
Section 14. Vice-Chairman. — In the absence of the
Chairman or in the event of his death, inability, or refusal to act,
the Vice-Chairman shall perform the duties of the Chairman and such
other duties as from time to time may be assigned to him by the Board.
Section 15. General Manager. — The General Manager
shall be the chief executive officer of the Corporation. No person
shall be appointed General Manager of the Corporation unless he is at
least thirty five of age, of good moral character and reputation, and
has reputed proficiency, expertise and recognized competence in banking
and economics, or finance, management, government administration, or
law.
Section 16. Powers and Duties of the General Manager.
— The General Manager of the Corporation shall have the following
duties and responsibilities:cralaw:red
(a) To prepare the agenda for meetings of the Board
and to submit for the consideration of the Board policies and measures
which he believes are necessary to carry out the purposes and
objectives of the Corporation;chanroblesvirtualawlibrary
(b) To execute and administer the policies, measures,
orders and resolutions approved by the Board; chanroblesvirtualawlibrary
(c) To execute all contracts in behalf of the
Corporation and to enter into all transactions required or permitted by
this Decree upon proper authorization by the Board;chanroblesvirtualawlibrary
(d) To recommend the appointment, promotion,
assignment or removal of all subordinate officers and employees of the
Corporation;chanroblesvirtualawlibrary
(e) To report periodically to the Board on the
operations of the Corporation; and
(f) To perform such other functions as may be
delegated to him by the President, with the approval of the Board.
Section 17. Deputy General Manager. — In the absence
of the General Manager or in the event of his death, inability or
refusal to act, the Deputy General Manager shall exercise the powers
and perform the duties of the General Manager and shall perform such
other duties as from time to time may be assigned to him by the General
Manager or by the Board.
Section 18. Auditor. — The Chairman of the Commission
on Audit shall act as the ex-officio Auditor of the Corporation and as
such, is empowered to appoint a representative who shall be the Auditor
of the Corporation and in accordance with law, fix his salary, and to
appoint and fix the salaries of the necessary personnel to assist said
representative in the performance of his duties, but in all cases
subject to the approval of the Board. The Auditor of the Corporation
and personnel under him may be removed only by the Chairman of the
Commission on Audit. chanroblesvirtualawlibrary
Section 19. Tax Exemption. — The Corporation shall be
exempt from all national, provincial, municipal and city taxes, fees,
charges and assessments now in force or hereafter established.
Section 20. Repealing Clause. — All laws, decrees,
executive orders, rules and regulations inconsistent herewith are
hereby repealed, amended or modified accordingly. chanroblesvirtualawlibrary
Section 21. Effectivity Clause. — This Decree shall
take effect immediately.
DONE in the City of Manila,
Philippines, this 26th day of November, in the Year of Our Lord,
nineteen hundred and eighty-five.
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