Question & AnswerQ&A (Republic Act No. 245)
The main purpose of Republic Act No. 245 is to authorize the Secretary of Finance, with the approval of the President and after consultation with the Monetary Board, to borrow funds to meet public expenditures authorized by law and to issue evidences of indebtedness of the Philippine Government for this purpose.
The Secretary of Finance is authorized to borrow on behalf of the Philippine Government, subject to the approval of the President and consultation with the Monetary Board.
The Central Bank of the Philippines is responsible for the actual issue, placement, servicing, and redemption of the securities issued under this Act, as provided under specific sections of the Central Bank Act.
Yes, the evidences of indebtedness issued under this Act may be made payable, both as to principal and interest, in any readily convertible foreign currency.
The Secretary of Finance can apply the lottery principle to redeem specific securities before maturity, either at their face value or above, by drawing them by lot.
Payments may be made out of any moneys in the National Treasury not otherwise appropriated, or from sinking funds provided for by law.
Yes, the Secretary of Finance may exchange matured or called obligations with other direct or guaranteed obligations of equivalent value, provided the holder agrees.
During the first month of each regular session, the Secretary of Finance must transmit to Congress detailed statements of all expenditures made under the act in the preceding calendar year.
Subject to the President's approval, the Secretary of Finance or the Central Bank may purchase materials and equipment and order services necessary for the issuance, placement, sale, servicing, redemption, or payment of government obligations, with continuing appropriation for such expenses.
The Secretary of Finance shall prepare and issue rules, regulations, and instructions necessary to effectively implement the provisions of the Act, including protective measures against fraud or loss to the government and investors.