Definition and Scope of International Agreements
- International agreements include contracts or understandings between the Philippines and other governments.
- Such agreements are written and governed by international law, whether in a single document or multiple related instruments.
- EO No. 459 (1997) provides guidelines for negotiation and ratification.
Constitutional and Legal Basis for Borrowings and Guarantees
- Section 20, Article VII of the 1987 Constitution permits the President to contract or guarantee foreign loans with prior Monetary Board concurrence.
- EO No. 292 tasks DOF to oversee negotiations and restructuring of debt.
Mandatory Coordination and Authorization Procedures
- All government departments, agencies, GOCCs, and SUCs must coordinate with the DFA before negotiating or signing international agreements.
- Coordination with the DOF is required prior to negotiating or signing agreements related to borrowings, guarantees, and foreign grants.
- Authorization from the Office of the President (OP) must be secured before negotiation or signing, except when DFA or DOF determines no authorization is needed.
Modes of Authorization
- Authorizations must be in writing via Full Powers, Special Authority, Letters, or Memoranda.
- These documents must be signed by the President or the Executive Secretary by authority of the President.
Requirements Before Requesting Authorization
- Agencies must perform complete staff work per Memorandum Circular No. 68 (2004).
- Staff work includes a summary of justification, legal basis, coordination efforts, potential issues, fund availability, and a draft action document.
Submission Timeline and Effective Date
- Requests for authorization should be submitted at least ten (10) working days before the desired issuance date.
- Requests are submitted to the OP through the DFA or DOF.
- The Circular takes effect immediately upon issuance on April 11, 2017.
Summary of Key Legal Concepts
- Emphasis on the Presidency's central role in foreign affairs.
- Inter-agency coordination ensures comprehensive review and compliance.
- Written, official authorization formalizes negotiation and signing of agreements.
- Observance of thorough preparatory work promotes informed decision-making.
- Timely submission facilitates administrative processing and evaluation.