EXECUTIVE ORDER NO. 63, December 10, 2001

ADJUSTING THE DIVIDEND RATE OF THE DEVELOPMENT BANK OF THE PHILIPPINES ON ITS 1999 AND 2000 NET EARNINGS

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

WHEREAS, Section 5 of RA 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, to support the viability and mandate of the Development Bank of the Philippines (DBP), the liquidity, capital position, retained earnings and medium-term plans and programs of DBP were considered in the determination of the reasonable dividend rate on its 1999 and 2000 net earnings;

WHEREAS, pursuant to Section 5 of RA 7656, the Secretary of Finance has recommended the adjustments on the percentages of 2000 and 1999 net earnings that shall be declared by the DBP as dividend 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 year 1999 net earnings to be declared and remitted by the DBP as dividends to the National Government is authorized to be adjusted to at least thirteen percent (13%), equivalent to an amount of not less than Two Hundred Thirty Three Million Pesos (P233 M).

Section 2. The percentage of year 2000 net earnings to be declared and remitted by the DBP as dividends to the National Government is authorized to be adjusted to at least twenty-five percent (25%), equivalent to an amount of not less than Five Hundred Eight Million (P508M).

Section 3. This Executive Order shall take effective immediately.

DONE in the City of Manila, this 10th day of December, in the year of our Lord, two thousand one.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) ALBERTO G. ROMULO

Executive Secretary