Question & AnswerQ&A (PRESIDENTIAL DECREE No. 1080)
The corporation is renamed as the Philippine Export and Foreign Loan Guarantee Corporation.
It is a wholly owned government corporation subject to laws applicable to government-owned corporations unless inconsistent with this Decree.
To guarantee approved foreign loans to domestic entities majority-owned by Filipinos and to guarantee Philippine banking and financial institutions against loss related to loans to exporters, producers of export products, and contractors with approved service contracts abroad.
Domestic entities, enterprises, or corporations majority-owned by Filipino citizens, particularly exporters, producers of export products, and contractors with approved service contracts abroad.
To promote foreign loans entry for development, guarantee loans to exporters and contractors, assist in service contracts abroad, assist in development planning, and provide technical assistance for projects.
To make contracts, lease or own property, sue and be sued, borrow funds with presidential approval, buy and sell securities, underwrite securities, invest funds, and establish rules for its purposes.
The Corporation facilitates foreign and domestic loan financing, evaluates borrower guarantee facilities, ensures loan payments and compensations, limits guarantees based on capital stock, and follows sound banking and financial principles.
The initial authorized capital stock is Two Billion Pesos (P2,000,000,000), fully subscribed by the Philippine government.
The Board consists of nine members including the Secretary of Finance (Chairman), President of the Corporation (Vice-Chairman), Secretaries of Industry, Trade, Natural Resources, Agriculture, Governor of the Central Bank, Director-General of NEDA, and Chairman-President of the Philippine Export Council.
Must be a native-born Filipino, at least 40 years old, of good moral character, integrity, and recognized competence in international finance, banking, and law. The President serves a six-year term unless removed for cause or incapacity.
No, the Corporation, its assets, income, and transactions are exempt from all taxation and government fees and charges.
The Government of the Republic of the Philippines fully guarantees such payments.
The Board must meet at least once every two weeks, and a quorum is the presence of five members.
The Central Bank of the Philippines supervises and examines the Corporation under relevant laws.
Yes, all guarantee operations and foreign exchange transactions are subject to applicable foreign exchange regulations of the Central Bank.