Rules and Regulations Implementing the Provisions of Paragraph 28 of the Memorandum of Economic Policies Issued September 15, 1986 on Structural Reforms for the Non-Financial Public Corporations

January 2, 1987 MINISTRY ORDER NO. 009-87 TO : Treasurer of the Philippines, Heads of Ministries, Bureaus and Offices, Government-Owned and/or Controlled Corporations, Government Financial Institutions, Chiefs of Financial and Management Services, Budget Officers, Chief Accountants/Heads of Accounting Units, Property Officers/Custodians, COA Unit Auditors and Others Concerned SUBJECT : Rules and Regulations Implementing the Provisions of Paragraph 28 of the Memorandum of Economic Policies Issued September 15, 1986 on Structural Reforms for the Non-Financial Public Corporations 1.0 Purpose To prescribe rules and regulations implementing the assessment and collection of interest charges on net lending made by the Bureau of Treasury on the servicing of foreign and domestic loans as defined under Section 1 of PD No. 1967. SCHIcT 2.0 Coverage This Order shall cover net lending as of December 31, 1986 and subsequent net lending representing payments made by the Bureau of Treasury for servicing loans obtained by or guaranteed by government-owned or controlled corporations, including government financial institutions, when for valid reasons, such institutions are unable to pay (Sec. 3 (f) of the MOF Order No. 23-85). 3.0 Rate The interest rate to be levied on net lending shall be the average 364-day Treasury Bill rate of each preceding quarter. Initially, to charge the rate corresponding to the average 364-day T/Bill rate as of December 31, 1986 on outstanding net lending as of December 31, 1986 up to March 31, 1987 with quarterly adjustments thereafter. 4.0 Exception The 364-day T/Bill rate shall not be levied and collected where corporations effect payments within 30 days after receipt of billing statements. 5.0 Collecting Agency The interest on net advances shall be collected by the Bureau of Treasury and shall be credited to the General Fund. 6.0 Application Partial payments made by corporations shall be applied first to interest on the advances, and the balance thereof shall be applied to net lending (principal, interest and other charges). ScEaAD 7.0 Effectivity These rules and regulations shall take effect immediately. (SGD.) JAIME V. ONGPIN Minister of Finance