Section 2
SEC. 2. Primary Purposes. The primary purposes of the Corporation shall be as follows: (a) To guarantee APPROVED foreign loans, in whole or in part, granted to any domestic entity, enterprise or corporation, majority of the capital of which is owned by citizens of the Philippines, and (b) TO GUARANTEE PHILIPPINE BANKING AND FINANCIAL INSTITUTIONS AGAINST LOSS THAT MAY BE INCURRED IN CONNECTION WITH (1) THE GRANT OF THE LOANS/CREDIT ACCOMMODATIONS TO EXPORTERS, PRODUCERS OF EXPORT PRODUCTS, OR CONTRACTORS WITH APPROVED SERVICE CONTRACTS ABROAD, PROVIDED THAT SUCH EXPORTERS, PRODUCERS OR SERVICE CONTRACTORS, ARE FILIPINOS OR ENTITIES MAJORITY OF THE CAPITAL OF WHICH ARE OWNED BY CITIZENS OF THE PHILIPPINES, AND (2) THE ISSUANCE OF STANDBY LETTERS OF CREDIT OR OF LETTERS OF GUARANTEE, AS THE CASE MAY BE TO SECURE THE PERFORMANCE OF APPROVED SERVICE CONTRACTS ABROAD ENTERED INTO BY ANY DOMESTIC ENTITY, ENTERPRISE OR CORPORATION, MAJORITY OF THE CAPITAL OF WHICH IS OWNED BY CITIZENS OF THE PHILIPPINES.