Authority for Amendment and Capital Increase
- The President of the Philippines, under constitutional powers and relevant proclamations, decrees the amendment of Republic Act No. 2081 to increase DBP’s capital stock.
Capital Stock Provisions (Section 3 Amended)
- The capital stock of DBP is increased to ₱3 billion, divided into three million shares with a par value of ₱1,000 each.
- The entire capital stock is fully subscribed by the Government of the Philippines.
Payment of Subscribed Capital
- At least 50% of the surplus account as of June 30, 1962, and at least 20% of net profits realized thereafter, including profits assigned as dividends to Government shares, shall automatically be applied to payment of subscribed capital until fully paid.
- After full payment, profits may be used for purposes authorized by the DBP Board of Governors.
Appropriation from Reparations Goods Sales
- 50% of the proceeds from the sale of reparations goods and services for 15 years are appropriated to cover the Government’s unpaid subscription.
- ₱75 million is set aside as a trust fund to aid the establishment of private provincial and city development banks.
Application of Stabilization Tax
- The portion of the stabilization tax allocated to a special account with DBP shall be automatically applied to payment of the Government’s subscribed capital from the date of receipt.
Conversion of DBP Obligations into Paid-in Capital
- DBP’s obligations as of April 30, 1973, including bonds issued and loans under R.A. Nos. 265 and 2081, with interest, shall be converted into paid-in capital assumed by the Government.
- The President, on the recommendation of the Secretary of Finance, will issue treasury bonds or securities to the Central Bank of the Philippines to settle these obligations under terms recommended in consultation with the Monetary Board.
Effectivity
- The decree shall take effect immediately upon issuance.