Financing the Procurement, Development and Construction of DOMSATPHIL Telecommunications System
Letter of Instructions No. 488, issued on December 15, 1976, directs the Monetary Board and the Central Bank of the Philippines to consider financial assistance for Domestic Satellite Philippines, Inc. (DOMSATPHIL), which holds a franchise under Presidential Decree No. 947. This assistance is aimed at financing the development of a telecommunications system, including ground stations across the Philippines, in line with government infrastructure development programs. The directive permits exceptions to existing laws regarding Debt/Equity ratios and allows the acceptance of physical assets as collateral, even without underlying land. Additionally, leasehold rights or franchises from government authorities may also be accepted as equity or collateral.
December 15, 1976
LETTER OF INSTRUCTIONS NO. 488
| TO | : | The Monetary Board |
| The Governor | ||
| Central Bank of the Philippines | ||
| The Board of Directors | ||
| The President | ||
| Philippine National Bank |
As a matter of public interest, national security and national defense, you are hereby directed to consider the application submitted by the Domestic Satellite Philippines, Inc. (DOMSATPHIL), which has been granted a franchise under Presidential Decree No. 947, for any appropriate form of financial assistance to finance the procurement, development and construction of the DOMSATPHIL telecommunications system including ground stations to be located in various areas of the Archipelago.
You shall base your action on such application principally in line with the Government Infrastructure Development Programs which include telecommunications. The provisions of existing laws notwithstanding, I hereby authorize you, by virtue of the powers vested in me by the Constitution, to set aside the Debt/Equity ratio requirement and to accept as collateral, valued on a sound basis the physical assets and facilities to be constructed by the DOMSATPHIL out of the proceeds of the financial assistance from you, even in the absence of any underlying land collaterals. You are likewise authorized to accept as equity and/or collateral any leasehold or similar rights or franchises which the DOMSATPHIL may obtain from the appropriate government authority/authorities. acd
DONE in the City of Manila, this 15th day of December, in the year of Our Lord, Nineteen Hundred and Seventy-Six.