Increase in Subscription of the Philippines to Capital Stock of Asian Development Bank

October 27, 1972

PRESIDENTIAL DECREE NO. 32

AUTHORIZING THE INCREASE IN THE SUBSCRIPTION OF THE PHILIPPINES TO THE CAPITAL STOCK OF THE ASIAN DEVELOPMENT BANK

WHEREAS, the Asian Development Bank (ADB) has approved the increase in the Bank's authorized capital from $1.1 billion to $2.75 billion to enable it to maintain the pace of its assistance to developing member countries;

WHEREAS, the corresponding increase in the Philippines subscription to the Bank is $43 million in callable capital end P10.5 million in paid-in-capital;

WHEREAS, the Philippines has been the recipient of various loans from the ADB aggregating $62 million which have partially satisfied the grant need of the Philippine Government for funds for the economic development projects; and

WHEREAS, it is imperative that the necessary authority, pending in Congress as H. No. 5246, for the Republic of the Philippines to increase its subscription to the ADB be granted, as the installments on the paid-in shares commence on April 3, 1973;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to Proclamation No. 1081 dated September 21, 1972, and General Order No. 1 dated September 22, 1972, do hereby decree, order and make as part of the law of the land H. B. no. 5246, entitled: "AN ACT AUTHORIZING FOR THE PRESIDENT OF THE PHILIPPINES TO NEGOTIATE FOR THE INCREASE IN THE SUBSCRIPTION OF THE PHILIPPINES TO THE CAPITAL STOCK OF THE ASIAN DEVELOPMENT BANK, AND PROVIDING FOR THE PROCEDURE, TO MEET THE FINANCIAL REQUIREMENTS THEREFOR." cdt

This Decree shall take effect immediately.

DONE in the City of Manila, this 27th day of October, in the year of Our Lord, Nineteen Hundred and Seventy-Two.

ATTACHMENT

HOUSE OF REPRESENTATIVES

H. No. 5246

AN ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO NEGOTIATE FOR THE INCREASE IN THE SUBSCRIPTION OF THE PHILIPPINES TO THE CAPITAL STOCK OF THE ASIAN DEVELOPMENT BANK, AND PROVIDING FOR THE PROCEDURE TO MEET THE FINANCIAL REQUIREMENTS THEREFOR

SEC. 1. The President of the Philippines is hereby authorized to negotiate for the increase of the subscription of the Republic of the Philippines to the capital stock of the Asian Development Bank: Provided, however, That such additional subscription shall not exceed one hundred million United States dollars.

SEC. 2.

(a) To cover the initial payments on the increase in the subscription to the capital stock of the Asian Development Bank, the Secretary of Finance is authorized to secure, for and in behalf of the Republic of the Philippines, advances from the Central Bank of the Philippines, the necessary funds against which he shall issue five-year non-interest bearing and non-negotiable promissory notes of the Republic of the Philippines: Provided, however, That said promissory notes may be renewed for another five years.

(b) For the balance of the increase in subscription payable to the Asian Development Bank, the Secretary of Finance is likewise authorized to issue special notes of the Republic of the Philippines at par which shall be non-interest bearing and non-negotiable, and shall be payable on demand by the Asian Development Bank. In the event such demand is made by the Asian Development Bank, including any call for payment on the increase of callable capital of the subscription to the Asian Development Bank, the Central Bank of the Philippines shall advance the necessary account, under the same arrangements provided for in Paragraph (a) of this Section: Provided, That the authority for the Central Bank to advance payments to the Asian Development Bank and the authority of the Secretary of Finance to issue special notes against such advances as outlined in the immediately preceding portion of this Act shall likewise apply to previous subscription made by the Philippine Government to the capital stock of the Asian Development Bank. aDcHIC

SEC. 3. There is hereby appropriated out of any funds in the National Treasury not otherwise appropriated, such sums as may be necessary for the payment of advances made by the Central Bank as provided under Section 2 (a) and (b) of this Act: Provided, That any profits or losses on the debt instruments issued by the Philippine Government as provided under Section 2 (a) and (b) above arising from changes in the gold value of the peso, or of changes in the parities or exchange rate of foreign currencies with respect to the peso shall be assumed by the Central Bank and shall be treated in the manner prescribed under Section 44 of Republic Act No. 265: Provided, further, That the provisions for offsetting such revaluation profits or losses shall apply to previous debt instruments issued by the Philippine Government in connection with its subscription to the capital stock of the Asian Development Bank.

SEC. 4. All Acts or parts of Acts inconsistent herewith are hereby amended accordingly.

SEC. 5. This Act shall take effect upon its approval.