Question & AnswerQ&A (MEMORANDUM CIRCULAR NO. 16)
The President is the sole organ of the country’s foreign relations and the constitutionally assigned chief architect of its foreign policy.
The Department of Foreign Affairs (DFA) is designated as the lead agency to advise and assist the President in foreign relations.
An international agreement is defined as a contract or understanding, regardless of nomenclature, entered into between the Philippines and another government in written form, governed by international law, whether embodied in a single instrument or in two or more related instruments.
The President may contract or guarantee foreign loans on behalf of the Republic of the Philippines with the prior concurrence of the Monetary Board and subject to limitations provided by law.
The DOF is tasked to undertake and supervise activities related to the negotiation, servicing, and restructuring of domestic and foreign debt incurred or guaranteed by the government and its instrumentalities.
All government agencies, including GOCCs and SUCs, must coordinate closely with the DFA prior to negotiation and signing of international agreements and with the DOF prior to negotiation and signing of agreements covering borrowings, guarantees, and foreign grants.
Authorization must be secured from the Office of the President (OP) by the lead agency prior to negotiation or signing, unless the DFA or DOF determines the agreement does not require such authorization.
Authorization is granted in writing through Full Powers, Special Authority, Letter, or Memorandum signed by the President or the Executive Secretary by authority of the President.
They must strictly observe and comply with the requirements of complete staff work under Memorandum Circular No. 68, which includes submitting basic papers, all pertinent documents, justification, legal basis, coordination done, potential problems, fund availability, and a draft action document.
Requests must be submitted at least ten (10) working days before the desired date of issuance to allow sufficient time for evaluation and processing.