QuestionsQuestions (Republic Act No. 1604)
RA 1604 authorizes Philippine membership in the proposed International Finance Corporation (IFC) and authorizes the appropriation of funds to pay for the Philippine subscription to its capital stock.
The President of the Philippines or his representative is authorized to sign the Article of Agreement on behalf of the government.
The Article of Agreement of the International Finance Corporation.
It authorizes the appropriation of P332,000.00 to pay for the subscription of the government to the IFC’s capital stock.
Three hundred thirty-two thousand pesos (P332,000.00).
It will assist in financing the establishment, improvement, and expansion of productive private enterprises that contribute to member countries’ development.
The IFC’s investments are not backed by guarantees from member governments that they will repay the investment; instead, the financing is intended to be made where sufficient private capital is not available on reasonable terms.
Because membership would enable the Philippines to access a financing mechanism intended to support productive private enterprises and thereby contribute to economic development.
It was enacted by the Senate and House of Representatives of the Philippines in Congress assembled.
RA 1604 was approved on August 23, 1956, and it shall take effect upon its approval.
It indicates that the Articles of Agreement are incorporated into the law as part of the statute; thus, the authorization to join is tied to the specific terms contained in that incorporated appendix.
By authorizing the President (or representative) to sign the Article of Agreement, the law provides the governmental authority necessary for the Philippines to become a member under those Articles.
Investments in productive private enterprises aimed at establishment, improvement, and expansion, especially when sufficient private capital is unavailable on reasonable terms.
It explains the purpose of IFC investments: to bridge financing gaps in private enterprise when market/private capital cannot be obtained under reasonable terms.
Private investors are mentioned as associated with the proposed IFC in financing productive private enterprises.