QuestionsQuestions (EXECUTIVE ORDER NO. 32)
The Central Bank of the Philippines is authorized to establish the program for converting Philippine external debt obligations into equity investments.
External debt obligations owed to commercial banks or financial institutions are covered under this Executive Order.
Yes, both Filipino and foreign investors who hold or purchase such obligations may convert external debt into equity investments under the terms prescribed by the Central Bank.
Incentives such as more liberal terms for repatriation of investments and remittance of earnings may be provided, especially for investments in preferred sectors or areas of the Philippine economy requiring revitalization or foreign exchange earning industries.
The Central Bank may consider monetary, credit, and exchange conditions, as well as terms of the general restructuring of Philippine external debt obligations.
Yes, the Central Bank may impose and collect reasonable application fees for conversion applications and additional fees on conversion transactions for the account of the government.
The Central Bank, under terms prescribed by the Monetary Board, may extend peso credits through banking institutions to government-owned or controlled corporations to help reduce or pay external debt obligations involved in conversion transactions.
The Monetary Board, in coordination with the Minister of Finance, is responsible for promulgating the implementing rules and regulations, subject to the approval of the President.
Any provision of law, decree, executive order, or issuance inconsistent with this Executive Order is repealed or modified accordingly to ensure conformity with this Executive Order.