Hon. Senator Vicente T. Paterno

January 3, 1990 Hon. Senator Vicente T. Paterno Chairman, Committee on Economics Affairs Senate 8th Floor, Phil. Veterans Bldg. Bonifacio Drive, Port Area M a n i l a S i r : This refers to your letter dated December 14, 1989 requesting comments on Senate Bill No. 1276, entitled "An Act Prescribing A Credit Ceiling For Foreign Business Entities Operating in the Philippines". Relative thereto, we wish to inform you that the Commission fully supports the objective of the bill as it is in keeping with the government nationalistic policy contained in the Philippine Constitution ensuring Filipinos' rightful preference of the country's economic opportunities. National interest dictates that Filipinos should be given priority over foreigners to avail of the financial resources of this country. The 10% limit would open up the possibility of foreign owned business entities to float their shares of stocks to the public thereby enhancing the development of our capital market. However, it is suggested that the "peso borrowing" as defined under Section 4 (a) of the bill should not be limited to credits in Philippine currency obtained from domestic banks and other financial institutions but should embrace borrowings sourced from all domestic credit facilities, institutional or public. This proposal is made in view of the access of business entities to money market funds through the floatation and issuance of commercial papers and bonds. The inclusion of all possible domestic credit sources would be more in keeping with the laudable intent of the bill. cdlex Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman