PRESIDENTIAL DECREE No. 1014

AUTHORIZING THE INCREASE IN THE SUBSCRIPTION OF THE PHILIPPINES TO THE CAPITAL STOCK OF THE INTERNATIONAL FINANCE CORPORATION AND PROVIDING FOR THE PROCEDURE TO MEET THE FINANCIAL REQUIREMENTS THEREFOR

WHEREAS, the Board of Governors of the International Finance Corporation (IFC), a World Bank affiliate, has approved the increase in the Corporation's authorized capital from US$110,000,000 to US$650,000,000 to meet IFC's loan and equity commitments which have grown rapidly in recent years and to provide funds for the planned level of operations to further the economic development of member countries;

WHEREAS, the IFC offered for subscription to member countries the newly created 540,000 shares having a par value of US$1,000 each, of which the Philippines is proportionately allocated additional 3,081 shares involving a total amount of US$3,081,000 at US$1,000 per share;

WHEREAS, since its establishment in 1956 IFC has been extending financial assistance in the form of loans and investment in capital shares and technical assistance to productive private enterprises in the Philippines;

WHEREAS, it is the policy of the Philippine Government to pursue its international commitments on multilateral agreements aimed to promote economic growth and development;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree as follows:

Section 1. The President of the Philippines is hereby authorized to negotiate for the increase in the subscription of the Republic of the Philippines to the capital stock of the International Finance Corporation, Provided, however, That such additional subscription shall not exceed ten million United States dollars.

Section 2. To cover the payments on the increase in the subscription to the capital stock of the International Finance Corporation, 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 period of five years.

Section 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 of this Decree.

Section 4. All laws, rules and regulations inconsistent with this Decree are hereby amended or modified accordingly.

Section 5. This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of September in the year of Our Lord, Nineteen hundred and seventy-six.