Preamble
WHEREAS, the current economic crisis amounts to a grave emergency which affects the stability of the nation and requires immediate action: WHEREAS, the Republic of the Philippines as well as government-owned or controlled corporations and/or government financial institutions such as the Philippine National Bank, the Development Bank of the Philippines and the Philippine Export and Foreign Loan Guarantee Corporations have obtained various loans, relent substantial portion of its proceeds, and have likewise extended guarantees on loans both of the public and private sector to finance long-term economic and development projects; WHEREAS, due to certain constrainst, contingent or otherwise, payments on maturity schedules of relent and guaranteed loans sometimes could not be made by loan end-users, and creditors make payment demands and resort to calls on the guarantee of the Republic of the Philippine either as primary obligor or as direct and indirect guarantor; WHEREAS, to avoid cross default situations and to protect and maintain the credit standing of the country, most specially in the international community, the National Government makes prompt payments and/or advances for all loans, including those relent and/or guaranteed by the Republic of the Philippines, government—owned or controlled corporations and/or government financial institutions; WHEREAS, the issuance of this Decree is an essential and necessary component of the National Recovery Program formulated to meet and overcome the emergency; 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: