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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 1469 |
The Treasurer of the Philippines
The Minister of the Budget
The Governor, Central Bank of the Philippines
All Government-owned or Controlled Corporations
WHEREAS, in furtherance of the National Economic Recovery Program, the Philippines has agreed to a multinational arrangement for the rescheduling of credits made, guaranteed or insured by foreign governments and their agencies;
WHEREAS, under bilateral agreements entered into or being negotiated with creditor countries, the Central Bank of the Philippines had or has to automatically assume the obligations of public sector obligors;
WHEREAS, the control of liquidity in the domestic monetary system is an essential element of the overall stabilization effort of the Government, particularly in the drive to strengthen the balance of payments and reduce inflation;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct that:
1.
This Letter of Instructions shall apply (a) to credits made, guaranteed
or insured by foreign governments and their agencies and (b) to "public
sector obligors" which means the instrumentalities, and
government-owned or controlled corporations, including any entity more
than 50 percent of the beneficial ownership of which is held by one or
more public sector entities.
2. The
Government, through the National Treasurer, and other public sector
obligors with accounts subject to Paris Club rescheduling, shall
deliver to the Central Bank of the Philippines within 15 days from the
date hereof the peso equivalent of the foreign exchange obligations
which are in arrears as of December 31, 1984, including penalties, as
of the date hereof, and assumed by the Central Bank in the bilateral
agreements implementing the Agreed Minute on the Consolidation of the
Debt of the Republic of the Philippines dated December 20, 1984 (Agreed
Minute), computed on the basis of the exchange rate prevailing on the
date of deposit.
3. The
Government, through the National Treasury, and other public sector
obligors shall deliver to the Central Bank on the date of original
maturity, including penalties, of public sector obligors falling due in
1985 and in the first semester of 1986, and assumed by the Central Bank
in the bilateral agreements implementing the Agreed Minute, computed on
the basis of the exchange rate prevailing on the date of deposit.
4. The Central
Bank shall adopt a separate scheme for the Philippine National Bank,
including the National Investment and Development Corp., the
Development Bank of the Philippines and the Philippine Export and
Foreign Loan Guarantee Corporation and for the financing of the nuclear
power program.
5. The Central
Bank shall issue the guidelines necessary for the implementation of
this Letter of Instructions.
6. Failure by
any public sector obligor to deliver on schedule the peso equivalent of
its foreign exchange obligations covered by this Letter of Instructions
shall subject it to an interest to be determined by the Monetary Board
from time to time, which rate shall in no case be below the average
90-day Treasury Bill rate.
7. All those
concerned are hereby instructed to undertake the appropriate steps to
effect the above measures.
This Letter of Instructions shall take effect immediately.
DONE in the City of Manila this 1st day of July, in the year of Our Lord, nineteen hundred and eighty-five.
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