Amendments to Foreign Borrowing Act

The total authorized foreign borrowing by the government cannot exceed US$1 billion or equivalent foreign currencies.
Loans must have payment terms of not less than 10 years, except in cases of national security or natural calamities.
Interest rates and charges from non-governmental lenders are regulated by the Central Bank.
75% of borrowings must be allocated to public sector projects, 25% to private sector projects.
No private borrower may exceed 15% of total loans for relending unless approved by NEDA and the President.
The Central Bank will implement measures to reduce external debt service to an annual level not exceeding 20% of foreign exchange receipts.

The President may guarantee loans or indebtedness contracted by government-owned or controlled corporations and financial institutions.
The proceeds of guaranteed bonds or loans must be used for authorized industrial, agricultural, or economic development projects.
75% of guarantees shall be for government financial institutions' projects.
Borrowers are likewise subjected to a 15% limit of total guaranteed amounts except for certain development finance corporations.

Only Filipino citizens or corporations with at least 70% Filipino ownership, maintaining this ownership until full repayment, qualify to borrow from government financial institutions under this law.
Failure to maintain ownership triggers immediate loan due and penalties.

The President may agree to waive or modify laws restricting or granting preferences in international competitive bidding.
These laws include Commonwealth Act No. 138, RA No. 4239, and others, except those related to national defense or security.
Utilization of qualified domestic firms is encouraged.
A minimum 15% preference is granted for Philippine-made articles, materials, or supplies in competitive bidding.

The President is required to submit a separate report to Congress within 30 days after each regular session.
The report details loans contracted, negotiations, bonds or securities sold or proposed, guarantees extended, their terms, and projects financed.

Revenues from projects financed by these loans must be remitted to the National Treasury, after deducting necessary operational expenses.
If revenues are insufficient, budget savings or other National Treasury funds must cover the deficit.
The Monetary Board must ensure provisions from foreign exchange receipts to service external debt.
This revenue remittance does not apply to relending arrangements specified under certain sections.