APPROPRIATING FUNDS FOR THE PAYMENT OF THE REMAINING BALANCE OF THE UNPAID SUBSCRIPTION OF THE GOVERNMENT TO THE CAPITAL STOCK OF THE DEVELOPMENT BANK OF THE PHILIPPINES

• Number: Presidential Decree No. 811
• Sections: 3

Preamble

WHEREAS, in line with the objective of rapid economic

growth, it is necessary for the Government to provide massive credit

financing for the development and expansion of industry and agriculture;

WHEREAS, the Development Bank of the Philippines is the

primary agency of the Government which provides credit facilities for

economic development purposes;

WHEREAS, under its Charter (Republic Act No. 2081, as

amended) the Development Bank of the Philippines has an authorized

capital of P3 billion fully subscribed by the Government, of which P1.8

billion has been paid and except for the conversion of 20% of the Bank's

annual net income there is no provision for continuous payment of the

Government's subscription;

WHEREAS, the Development Bank of the Philippines is being

called upon to meet the funding requirements of high priority economic

development projects, specifically the tourist hotel expansion program

and food production project;

WHEREAS, the present provisions of the existing law

governing the payment of the Government's subscription to the capital

stock of the Bank is not sufficient to allow the Bank to increase its

resources to meet the funding requirements of the aforesaid priority

projects;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution

and in order to effect the desired changes and reforms in the social,

economic, and political structure of our Society, de hereby order and

decree the further amendment of Republic Act No. 2081, as amended, as

follows:

Section 1

SEC. 1. The following provision is hereby inserted as

letter (e) under Section 3 of R.A. 2081, as amended:

"(e)

Whatever remaining balance

of the unpaid subscription of the Government to the capital stock of the

Bank shall be paid out of any funds in the National Treasury not

otherwise appropriated, be they collections from any or all taxes

accruing to the general fund or proceeds from loans, the issuance of

bonds, treasury bills or notes; which are hereby autorized to the

incurred or to be issued by the Secretary of Finance for the purpose,

such amount to be programmed and released in accordance with the

following schedule:

P400 million—in FY 1975-76

P350 million—in FY 1976-77

P150 million—in FY 1977-78

P100 million—in FY 1978-79

P100 million—in FY 1979-80

P100 million—in FY 1980-81

Section 2

SEC. 2. This Decree shall take effect immediately.

Done in the City of Manila, this 17th day of October, in the

year of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary