Requiring All Letters of Credit Issued by Foreign-Based Contractors Be Opened with a Domestic Bank

November 28, 1979

LETTER OF INSTRUCTIONS NO. 965

In order to ensure that the interest of the government is amply protected in contracts entered into by its agencies and instrumentalities and by local governments and government-owned or controlled corporations, where such contracts provide for the issuance of a letter of credit to guarantee the advance payment made by said government agencies, instrumentalities, corporations and local governments to foreign-based contractors, it is hereby required that all such letters of credit to be issued by the said foreign-based contractors in favor of the contracting government agency/instrumentality/ corporation or local government, be opened with a domestic bank, preferably the Philippine National Bank. casia

All heads of ministries, bureaus, offices, agencies and instrumentalities of the government, local governments and government-owned or controlled corporations are hereby enjoined to strictly enforce the above requirement on all pertinent contracts entered into by their respective offices.

DONE in the City of Manila, this 28th day of November, in the year of Our Lord, Nineteen Hundred and Seventy-Nine. cd