Philippine Export and Foreign Loan Guarantee Corp.

To guarantee approved foreign loans granted to majority Filipino-owned domestic entities.
To guarantee Philippine banking and financial institutions against losses related to loans or credit accommodations extended to Filipino exporters, producers of export products, and contractors with approved overseas service contracts.
To guarantee issuance of standby letters of credit or letters of guarantee for performance of approved overseas service contracts involving Filipino entities.

Facilitate the entry of foreign loans for development, especially benefiting export-oriented and government-encouraged industries.
Guarantee loans by Philippine financial institutions to qualified exporters, producers, and overseas contractors.
Provide counter-guarantees for standby letters of credit and letters of guarantee securing approved overseas service contracts.
Assist domestic entities in coordinating development and expansion plans.
Provide technical assistance in preparing, financing, and executing development or expansion programs.

Authority to enter contracts, own and dispose of property, sue and be sued.
Can borrow funds domestically or abroad with President’s approval and adherence to applicable banking laws and regulations.
Powers to buy, sell, underwrite securities, invest idle funds, and establish operational rules.

Focus on facilitating foreign/domestic loan financing and implementation of overseas contracts with net foreign exchange earnings.
Carefully consider borrower’s ability to get guarantees elsewhere and capacity to meet obligations.
Require suitable compensation for risk-bearing activities.
Ensure proper use of loan proceeds.
Limit guarantees to not exceed subscribed capital stock individually and aggregate obligations capped at 15 times the capital stock plus surplus.
Subrogation rights following payment pursuant to guarantees.
Governed by sound banking and financial management principles.

Initial capital stock set at 2 billion pesos, fully subscribed by the Philippine government.
Capital stock increase subject to presidential approval.
Central Bank may grant loans and advances secured by acceptable assets.
Government guarantees full payment of obligations incurred by the Corporation.

Composed of nine members including key government secretaries and officials with designated alternates.
Holds policy-making, administrative, and supervisory functions.
Authority to prepare policies, issue regulations, manage personnel, and authorize expenditures.
Meets regularly with quorum and voting rules specified.
Board members, except the Corporation President, receive a per diem for meetings.

Appointed by the President of the Philippines for a six-year term, with criteria including Filipino citizenship, age, integrity, and expertise in finance, banking, or law.
Duties include preparing the Board agenda, implementing policies, and overseeing operations.
Salary fixed by the Board with presidential approval; initial salary set.
Assisted by executive officials for efficient operation.

Other officials and employees appointed and removed by the Board upon presidential recommendation.
Government offices and corporations provide assistance including personnel details on a full- or part-time basis.
Auditor from the Commission on Audit appointed with specified qualifications and removal procedures.

Corporation to coordinate policies with Central Bank, NEDA, Philippine Export Council, and relevant government departments.
Central Bank to provide necessary foreign exchange and exercise supervision and examination powers.
Corporation’s foreign exchange transactions subject to existing Central Bank regulations.

Corporation exempt from all taxation, fees, and government charges.
Not subject to Wage and Position Classification Office standards and salary scales.
Applicable provisions of Corporation Law and Civil Service Law as long as consistent with this Decree.