Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1063)
The primary purpose is to amend Presidential Decree No. 350 by strengthening the Philippine Cotton Corporation and expanding its resources to effectively implement a cotton development program aiming for self-sufficiency in cotton production in the Philippines.
The Corporation is empowered to administer funds including trust funds set up by the government or entities related to the national cotton development program, and to accept donations and grants from local or foreign governments and private entities, administering these in accordance with their terms.
The provisions establishing the corporation as a joint venture between the government and private sector with a fixed 60-40 ownership ratio, including details on capital stock subscription and payment, were deleted.
The Board consists of eleven members: four government representatives appointed by the Secretary of Agriculture including the Director of the Philippine Textile Research Institute, and seven private sector representatives, including two from the textile industry and three elected by the stockholders. The Chairman and Vice-Chairman are elected by the Board members.
The President is appointed by the Board from among qualified individuals in the private sector.
The Corporation can issue bonds in Philippine or convertible foreign currency upon Board resolution, with approval by the President upon the Finance Secretary's recommendation. The Republic of the Philippines guarantees payment of principal and interest on these bonds.
The Republic guarantees the payment of all obligations incurred with government-owned or controlled financial institutions, including principal and interest, should the Corporation default.
Yes, the Corporation may approach domestic and international sources of financing, including multilateral and bilateral institutions, for grants, loans, or both.
The PTRI provides a grant of at least P500,000 annually to the Corporation to support research, development, or feasibility studies, without limiting the Corporation’s efforts to obtain other financing.
Yes, all government-owned or controlled financial institutions, except the Central Bank of the Philippines, are empowered to guarantee acceptance credits, loans, transactions, or obligations incurred by the Corporation.