Submission of All Foreign Borrowing Proposals to the Central Bank for Approval
Letter of Instructions No. 158, issued on January 21, 1974, mandates that all foreign borrowing proposals by the Philippine government and its agencies must receive prior approval from the Central Bank's Monetary Board. This approval is crucial for ensuring that borrowings align with the government's financial strategies and enhance the country's creditworthiness. The Secretary of Finance and the Central Bank Governor are designated as the primary negotiators for these foreign loans, with responsibilities to coordinate and establish necessary implementing rules. This directive aims to maintain the integrity of the government's fiscal commitments and international reserves.
Law Information
- Reference Number
- Letter of Instructions No. 158
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Letters of Instructions
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
January 21, 1974
LETTER OF INSTRUCTIONS NO. 158
TO : All Heads of Departments, Offices and Agencies of the Government
In view of the necessity of effecting a rational and well-coordinated government borrowing strategy and thereby ensure that such borrowings, aside from meeting valid requirements of the government borrowers concerned, can be a positive instrument in further enhancing the country's credit standing and credibility abroad, in strengthening the government negotiating posture and in maintaining the integrity of the fiscal commitments of the Government and the county's international reserves, it is hereby ordered that: aisa dc
1. All foreign borrowing proposals of the Government, Government Agencies and government financial institutions shall be submitted to the Central Bank for approval in principle by the Monetary Board as to purpose and credit terms among others, before commencement of actual negotiations.
2. Actual negotiations for such foreign credits and/or accommodations shall be conducted by the Secretary of Finance and/or Central Bank Governor or their duly authorized representatives as chief or co-chief negotiators, together with the representatives of the Government, government agencies and government financial institutions or entities concerned.
The Secretary of Finance and the Governor of the Central Bank are hereby directed to coordinate in promulgating the implementing rules and regulations as are necessary to give effect to this Letter of Instructions.
DONE in the City of Manila, this 21st day of January, in the year of Our Lord, Nineteen Hundred and Seventy-Four. cd
Cite This Law
Submission of All Foreign Borrowing Proposals to the Central Bank for Approval, Letter of Instructions No. 158, Jan 21, 1974 (Philippines)
Submission of All Foreign Borrowing Proposals to the Central Bank for Approval, Letter of Instructions No. 158 (Phil. 1974)
Related Laws
- Funding of Government Activities from Foreign or Domestic Borrowing SourcesLetter of Instructions No. 880 • Jun 21, 1979 • Presidential Issuances
- Authority of Central Bank To Engage in Special Borrowing and Lending OperationsPresidential Decree No. 1309 • Mar 3, 1978 • Presidential Issuances
- Strengthening the Mechanism for the Evaluation, etc. of Projects Proposed for Foreign FinancingLetter of Instructions No. 592 • Sep 5, 1977 • Presidential Issuances
- Amending Sections 2 and 3 of R.A. No. 4860 (Re: Foreign Borrowing Act)Presidential Decree No. 621-A • Dec 23, 1974 • Presidential Issuances
- Amending R.A. No. 4860 As Amended (Re: Foreign Borrowing Act)Presidential Decree No. 81 • Dec 14, 1972 • Presidential Issuances
- Amending R.A. No. 265 (Central Bank Act)Presidential Decree No. 72 • Nov 29, 1972 • Presidential Issuances
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