Question & AnswerQ&A (Republic Act No. 8494)
The policy of the State is to encourage and promote the expansion of Philippine exports and establish a strong and credible export credit institution dedicated to export financing facilities and services to support the country's export sector.
The Trade and Investment Development Corporation of the Philippines (TIDCORP) is created, reorganized, and renamed from the Philippine Export and Foreign Loan Guarantee Corporation.
The primary purposes include: (a) guaranteeing approved foreign loans with Monetary Board concurrence; (b) guaranteeing Philippine banking and financial institutions against losses related to loans to exporters and contractors; (c) providing insurance cover and services to facilitate export of goods and services; and (d) providing guarantees or insurance cover for investments of Philippine entities or corporations.
Key functions include promoting foreign loans for development with emphasis on export and priority industries; guaranteeing loans to exporters and contractors; facilitating approved service contracts abroad; assisting domestic entities with development plans; providing technical assistance for development programs; and undertaking actions consistent with its primary purposes.
TIDCORP may borrow funds domestically or abroad with the approval of the President and prior concurrence of the Monetary Board for foreign borrowings, subject to applicable rules, and may buy and sell securities it issued or guaranteed, underwrite securities for consistent purposes, invest idle funds in government securities or high-credit debt instruments, and exercise other necessary powers.
The Board has nine members: Secretary of Finance (Chairman), President of the Corporation (Vice-Chairman), Secretary of Trade and Industry, Governor of the Bangko Sentral ng Pilipinas, Director-General of the NEDA, Chairman of the Philippine Overseas Construction Board, and three private sector representatives (at least one from the export community). Each government member may designate an alternate when absent.
The Board of Directors has exclusive and final authority to appoint, promote, transfer, assign, re-assign personnel, and fix their remuneration, emoluments, and fringe benefits upon recommendation by the President of TIDCORP.
No, TIDCORP personnel are exempt from existing laws, rules, and regulations on compensation, classification, and qualification standards but the system should conform as closely as possible to principles in Republic Act No. 6758 and be comparable to private sector practices with periodic reviews.
They continue exercising their functions as personnel of TIDCORP until reorganization is fully implemented or up to one year after the Act's approval. The Board may provide separation benefits to those not accommodated, including incentives in addition to what is provided by law.
All assets, liabilities, purposes, powers, functions, rights, obligations, claims, and interests of the Philippine Export and Foreign Loan Guarantee Corporation are deemed transferred to TIDCORP upon effectivity of the Act.