EXECUTIVE ORDER NO. 600, February 01, 2007

ADJUSTING THE DIVIDEND RATE OF NATIONAL HOME MORTGAGE FINANCE CORPORATION ON ITS 2004 AND 2005 NET EARNINGS PURSUANT TO Section 5 OF REPUBLIC ACT NO. 7656

WHEREAS, under Section 1 of Republic Act No. 7656, it is declared policy of the state that in order for the National Government to realize additional revenues, government-owned and/or controlled corporations, without impairing their viability and the purposes for which they have been established, shall share a substantial amount of their net earnings to the National Government;

WHEREAS, Section 5 of Republic Act No. 7656 provides that “in the interest of national economy and general welfare, the percentage of annual net earnings that shall be declared by a government-owned and/or controlled corporation may be adjusted by the President of the Philippines upon recommendation by the Secretary of Finance“;

WHEREAS, the viability, liquidity, capital position, retained earnings and medium term plans and programs and mandate of the National Home Mortgage Finance Corporation were considered in the determination of the reasonable dividend rates on its 2004 and 2005 net earnings;

WHEREAS, pursuant to Section 5 of RA 7656, the Secretary of Finance recommended the adjustment of the percentage of dividend rate for 2004 and 2005 that shall be declared by NHMFC to the National Government, in the interest of national economy and general welfare;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. The percentage of net earnings to be declared and remitted by the NHMFC as dividends to the National Government as provided for under Section 3 of Republic Act No. 7656 is authorized to be adjusted to five percent (5%), or an equivalent amount of not less than Php 36.207 Mn for 2004 and Php 29.105 Mn for 2005.

Section 2. The adjusted dividend rate provided for under Section 1 is only applicable on 2004 and 2005 net earnings of the NHMFC.

Section 3. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 1st day of February, in the year of Our Lord, Two Thousand and Seven.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA

Executive Secretary