Microfinance Program.
SEC. 13. Microfinance Program. – The programs and implementing mechanisms of the Social Reform Agenda's Flagship Program on Credit shall be integrated, adopted and further enhanced to effectively support the objectives of this Act along the following thrusts: Development of a policy environment, especially in the area of savings generation, supportive of basic sector initiatives dedicated to serving the needs of the poor in terms of microfinance services;
Rationalization of existing government programs for credit and guarantee;
Utilization of existing government financial entities for the provision of microfinance products and services for the poor; and
Promotion of mechanisms necessary for the implementation of microfinance services, including indigenous microfinance practices.
People's Credit and Finance Corporation (PCFC).
SEC. 14. People's Credit and Finance Corporation (PCFC). – The People's Credit and Finance Corporation (PCFC), a government-controlled corporation registered with the Securities and Exchange Commission and created in accordance with Administrative Order No. 148 and Memorandum Order No. 261, shall be the vehicle for the delivery of microfinance services for the exclusive use of the poor. As a government-owned and controlled corporation, it shall be the lead government entity specifically tasked to mobilize financial resources from both local and international funding sources for microfinance services for the exclusive use of the poor.
Increase in the Capitalization of PCFC.
SEC. 15. Increase in the Capitalization of PCFC. – To facilitate the increase in the capitalization of the PCFC, the President of the Republic of the Philippines shall take measures to enable the amendment of the Articles of Incorporation of the PCFC such that: The authorized capital stock of the PCFC may be increased from One hundred million pesos (P100,000,000) to Two billion pesos (P2,000,000,000) divided into twenty million common shares with a par value of One hundred pesos (P100) per share;
The subscribed capital stock may be increased from One hundred million pesos (P100,000,000) to Six hundred million pesos (P600,000,000) and the national government may subscribe the difference of Five hundred million pesos (P500,000,000);
The initial paid-up capital may be increased from One hundred million pesos (P100,000,000) to Two hundred fifty million pesos (P250,000,000), to be increased subsequently to a total of Six hundred million pesos (P600,000,000), such that at the end of a period of four (4) years the subscribed capital shall be fully paid-up, in the following manner:
For the initial increase in paid-up capital during the first year, the difference of One hundred fifty million pesos (P150,000,000) shall be paid and appropriated for by government; for the second year, One hundred fifty million pesos (P150,000,000); for the third year, One hundred million pesos (P100,000,000); and for the fourth year, One hundred million pesos (P100,000,000).
The appropriations for the additional paid-up capital shall be sourced from the share of the national government in the earnings of the PAGCOR, in the manner provided for under Section 18, which provides for the appropriations under this Act.
Special Credit Windows in Existing Government Financing Institutions (GFIs).
SEC. 16. Special Credit Windows in Existing Government Financing Institutions (GFIs). – The existing government financial institutions shall provide for the savings and credit needs of the poor. The GFIs such as the Land Bank of the Philippines, Philippine Postal Bank, Al Amanah Bank, and the Development Bank of the Philippines are hereby mandated to coordinate with NAPC and PCFC in setting up special credit windows and other arrangements, such as the servicing of Small Savers Instruments (SSIs), that will promote the microfinance program of this Act.
The private financing institutions may also provide the savings and credit requirements of the poor by setting up similar credit windows and other arrangements to promote the savings component of the microfinance program of this Act.
Special credit windows for the poor shall, as far as practicable, include an allocation for the basic sectors, as defined in this Act, particularly those living in the rural areas, agrarian reform communities, and women in the countryside.
PCFC Privatization.
SEC. 17. PCFC Privatization. – In the event that the ownership of the majority of the issued voting stocks of PCFC shall have passed to private investors (exclusively qualified nongovernment organizations, people's organizations and cooperatives), the stockholders shall cause the registration with the Securities and Exchange Commission (SEC) of the revised Articles of Incorporation and By-laws. The PCFC shall thereafter be considered as a privately organized entity subject to the laws and regulations generally applied to private corporations.
The chairman of the PCFC may still be a member of the National Anti-Poverty Commission (NAPC) upon the privatization of the PCFC: Provided, That the PCFC will continue its main purpose of providing for the savings and credit needs of the poor.
TITLE III - APPROPRIATIONS FOR THE NATIONAL ANTI-POVERTY COMMISSION (NAPC) AND THE PEOPLE'S DEVELOPMENT TRUST FUND (PDTF)
Appropriations.
SEC. 18. Appropriations. – To carry out the provisions of this Act, the following amounts are appropriated as follows: The sum of One hundred million pesos (P100,000,000) is hereby appropriated as the initial operating fund in addition to the unutilized funds of the rationalized commission and councils. The sum shall be sourced from the President's Contingent Fund. In subsequent years, the amount necessary to implement this Act shall be included in the annual appropriations. The said amounts shall be under the management of the NAPC.
The aggregate sum of Four billion and five hundred million pesos (P4,500,000,000) for ten (10) years is hereby appropriated for the establishment of the People's Development Trust Fund (PDTF) from the share of the national government in the earnings of the Philippine Amusement and Gaming Corporation (PAGCOR), in the following manner: on the first year, Three hundred fifty million pesos (P350,000,000); on the second year, Three hundred fifty million pesos (P350,000,000); on the third year, Four hundred million pesos (P400,000,000); on the fourth year, Four hundred million pesos (P400,000,000); on the fifth year and every year thereafter until the tenth year, Five hundred million pesos (P500,000,000) annually.
The aggregate sum of Five hundred million pesos (P500,000,000) for four years shall be appropriated for the increase in the capitalization of the PCFC, from the share of the national government in the earnings of the PAGCOR, at such time that the increase in the capitalization of the PCFC, in the manner provided for under Section 15 of this Act, shall have been effected. The appropriation shall be made in the following manner: on the first year, One hundred fifty million pesos (P150,000,000); on the second year, One hundred fifty million pesos (P150,000,000); on the third year, One hundred million pesos (P100,000,000); and on the fourth year, One hundred million pesos (P100,000,000).
Transitory Provision.
SEC. 19. Transitory Provision. – The Social Reform Council (SRC) and the representatives therein shall, in temporary capacity, exercise the powers and assume the duties of the NAPC until such time that the members of NAPC shall have been duly appointed or designated.
The Office of the President shall formulate the implementing rules and regulations (IRR) of this Act within six (6) months after its effectivity.
The assets, liabilities and personnel of PCFP, SRC and PCCD are hereby transferred to the NAPC. Personnel who cannot be absorbed by NAPC shall be entitled to a separation pay of one and- a-half (1 1/2) months for every year of service and other benefits under existing retirement laws, at the option of the personnel concerned.
Repealing Clause.
SEC. 20. Repealing Clause. – All laws, executive orders, rules and regulations, or parts thereof, inconsistent with this Act are hereby repealed, amended or modified accordingly. The provisions of this Act shall not be repealed, amended or modified unless expressly provided in subsequent general or special laws.
Separability Clause.
SEC. 21. Separability Clause. – If any provision of this Act shall be held invalid or unconstitutional, the remaining provisions thereof not affected thereby shall remain in full force and effect.
Effectivity Clause.
SEC. 22. Effectivity Clause. – This Act shall be effective on June 30, 1998.
Approved, December 11, 1997.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
