QuestionsQuestions (DOLE DEPARTMENT ORDER NO. 104-10)
PD No. 2000 creates the Private Debt Restructuring and Repayment Corporation to administer a program for the rescheduling and repayment of private corporate sector foreign currency debt, while providing forward foreign exchange risk protection and assisting the Central Bank in managing foreign exchange outflows consistent with the government’s economic adjustment program.
The body corporate is named the “Private Debt Restructuring and Repayment Corporation,” referred to in the Decree as the “Corporation.”
Its principal office is in Metropolitan Manila. It may establish branches elsewhere in the Philippines as necessary or proper to attain its objectives.
The Corporation has an authorized capital of PHP 2,000,000,000. Initially, PHP 500,000,000 is subscribed and PHP 25,000,000 is paid for by the Central Bank of the Philippines.
The objectives are: (a) provide flexible repayment options for outstanding foreign currency debt consistent with viability and debt service capability; (b) provide forward exchange protection to corporations availing of such cover; and (c) assist the Central Bank in managing foreign exchange outflow consistent with the government adjustment program.
It may enter into forward exchange transactions or other transactions with any domestic non-financial entity, enterprise, or corporation duly registered/licensed in the Philippines to enable hedging of foreign exchange risk associated with its foreign currency-denominated restructured debt.
It may extend peso-denominated loans to eligible domestic non-financial entities. The proceeds must be used solely to settle their restructured foreign currency-denominated debt.
It may exercise the general power of a corporation mentioned in the Corporation Code insofar as not inconsistent with the Decree, and do all things necessary or proper to accomplish the Decree’s objectives or proper conduct of its operations, or as directed by the President.
Yes. It may contract foreign currency loans/credits/indebtedness with the guarantee of the Republic of the Philippines, subject to agreed terms with lenders, concurrence of the Monetary Board (general or specific), and final approval of the President of the Philippines.
All foreign exchange profits and losses from forward exchange operations and other FX transactions are chargeable against the Central Bank’s revaluation account in accordance with Republic Act No. 265, as amended.
The Board consists of the Governor of the Central Bank of the Philippines as ex-officio Chairman, a Vice-Chairman, five other members, including the Chairman of the Development Bank of the Philippines and the President of the Philippine National Bank as ex-officio members, plus two members from the Monetary Board designated by the Monetary Board, and two additional members from government or private sector appointed by the President.
Appointive members serve for one year from appointment and until successors are duly appointed and qualified. The Board elects one of its members as Vice-Chairman.
The Board meets regularly at least once a month at the Corporation’s office unless otherwise determined by the Board. Special meetings are held whenever requested by the Chairman or upon written request of two directors.
Board members are entitled to per diems for meetings actually attended in an amount the Board deems appropriate, but not exceeding PHP 500 per meeting or PHP 2,000 per single month.
Officers are the Chairman, Vice-Chairman, General Manager, and Deputy General Manager. The General Manager, Deputy General Manager, and other officers and employees are appointed by the Chairman with confirmation of the Board.
The Central Bank may assign officials/employees on detail; such assignment is deemed in the interest of the service and not disciplinary, and it does not interrupt the continuity of their Central Bank service. They continue to receive Central Bank remuneration; they do not receive additional compensation from the Corporation, which must pay or reimburse the Central Bank remuneration/emoluments.
The General Manager must be at least 35 years old, of good moral character and reputation, and must have reputed proficiency/expertise and recognized competence in banking and economics or finance/management/government administration—or law.
Yes. It is exempt from all national, provincial, municipal, and city taxes, fees, charges, and assessments now in force or hereafter established.