Government Project on the Expansion of the Private Market for Government Securities

August 31, 1965 REVENUE MEMORANDUM CIRCULAR NO. 30-65 There is reproduced hereunder a directive of the Honorable, the Secretary of Finance, dated August 16, 1965. aisadc "In order to give the necessary impetus to the present project of the National Government for the expansion of the private market for government securities, we are requesting your office to extend full cooperation and support to the project. "The drafting and formulation of the over-all design envisioned to achieve the said proposed expansion is being jointly undertaken by the Government and the private sector, represented by Bancom Development Corporation. The services of Bancom Development Corporation has been retained as a result of a series of conferences with members of stock exchanges, representatives of the investment banking community and other business leaders. "The objectives of this joint effort is to formulate within the context of national monetary policy: "1. An Integrated over-all government debt management and borrowing strategy; "2. A policy and program for using private security dealers, brokers and investment bankers for the distribution of new government issues; and "3. A policy and program to encourage and assist private security dealers, brokers and investment bankers in providing an active secondary market for government securities. "Beyond merely opening up new sources of non-inflationary financing for government purposes at all levels, the expansion of the private market for government securities can become a potent instrument for monetary policy. Precisely for this reason, the Central Bank of the Philippines has offered its facilities to such a project. "It is therefore requested that full support and assistance be given to the combined government private sector team that will be constituted to undertake the afore-described project by giving it access to all reasonable requests for information that it may require exclusive of those which are highly classified or confidential and which under existing laws cannot be divulged without court order." "Sincerely yours, (SGD.) RUFINO G. HECHANOVA Secretary of Finance In order to give effect to the above directive, it is hereby ordered that all the facilities of the Bureau of Internal Revenue be made available to the combined government-private sector team referred to therein, subject to the limitations imposed by Secs. 81 and 347 of the National Revenue Code, as amended. cdt (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue