Question & AnswerQ&A (Republic Act No. 1000)
The purpose of Republic Act No. 1000 is to authorize the President of the Philippines to issue bonds to finance public works and self-liquidating projects for economic development, including expropriation for subdivision and resale of lands, or to repay or service bonded obligations incurred for such projects.
A sinking fund shall be established to ensure that total annual contributions and accrued interest shall be sufficient to redeem the bonds at maturity. The fund shall be under the custody of the Central Bank of the Philippines and invested in a manner approved by the Monetary Board.
The Secretary of Finance, in consultation with the Monetary Board, prescribes the form, rate of interest, denominations, maturities, negotiability, convertibility, call, redemption features, and all other terms and conditions of the bonds.
Yes, the bonds may be made payable both as to principal and interest in Philippine currency or any readily convertible foreign currency.
The President shall submit a yearly report to Congress, not later than thirty days from the opening of Congress, on the progress made on the various projects financed by the bond issues.
Sinking fund and interest payments for revenue-producing projects shall be paid from the net income of the project, and in the case of toll roads and bridges, from net toll collections; if these are insufficient, payments shall be made from the annual appropriation.
Not more than ten percent of the bond issue may be used to pay unserviced government obligations, loans, or advances guaranteed by the National Government but made by government owned or controlled financial institutions other than the Central Bank.