PRESIDENTIAL DECREE No. 1622

FURTHER AMENDING REPUBLIC ACT ONE THOUSAND ENTITLED "AN ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO ISSUE BONDS TO FINANCE PUBLIC WORKS AND PROJECTS FOR ECONOMIC DEVELOPMENT, AUTHORIZED BY LAW AND FOR OTHER PURPOSES," AMENDED

WHEREAS, under Section 1 of R. A. 100, as amended, the President of the Philippines, "upon recommendation of the Secretary of Finance, the Monetary Board and the National Economic and Development Authority," is authorized to issue, preferably in the Philippines or abroad if necessary, in the name and in behalf of the Republic of the Philippines bonds, including lottery bonds, in an amount not exceeding two billion pesos for socio-economic development;

WHEREAS, the present economic and social development plans entail massive financing not only from foreign sources but also from domestic borrowings to meet the peso counterpart funds required to sustain the various foreign-assisted projects of the Government designed to enhance economic growth;

WHEREAS, the balance out of the ceiling of two billion pesos fixed for domestic borrowings under the present law is considered insufficient to continuously support the Government's overall development plans;

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 further amendment to paragraph 1, Section 1 of R. A. 100, as amended, to read as follows:

"Sec. 1. Upon the recommendation of the Minister of Finance, the Monetary Board, and the National Economic and Development Authority, the President of the Philippines is authorized to issue, preferably in the Philippines, or abroad if necessary, in the name and in behalf of the Republic of the Philippines bonds, including lottery bonds, in an amount not exceeding Ten billion pesos to finance public works and project for economic and social development which have high economic or social rates of returns and which are authorized by law, including expropriation of lands for subdivision and resale to individuals, or to repay or service bonded obligations of the Government incurred for such projects: Provided, however, The investments in such projects by provinces, cities, and municipalities shall be limited by the paying capacity of the province, city or municipality to be certified by the Minister of Finance and that the probable income from such projects shall be taken into consideration; And provided, further, That no issue shall be made if eighty per centum of the immediately preceding issue of the same type has not been sold: Provided, finally, That not more than ten per centum of this bond issue shall be used to pay government obligations, loans and advances, whether secured or unsecured, guaranteed by the National Government, made by government-owned or controlled financial institutions other than the Central Bank, to government political subdivisions, offices and instrumentalities and/or other loans committed by government-owned and/or controlled financial institutions other than the Central Bank, guaranteed by the Government that cannot be met on maturity."

Done in the City of Manila, this 3rd day of May in the year of Our Lord, nineteen hundred and seventy-nine.