WHEREAS, Section 1 of Republic Act (RA) No. 7656 provides that:

"SECTION 1. Declaration of Policy. - It is hereby declared the policy of the State that in order for the National Government to realize additional revenues, government-owned and/or controlled corporations, without impairing their viability and the purposes for which they have been established, shall share a substantial amount of their net earnings to the National Government."

WHEREAS, to support the viability and mandate of government-owned and/or controlled corporations (GOCCs), the liquidity, retained earnings position and medium-term plans and programs of these GOCCs were considered in the determination of the reasonable dividend rates of such corporations on their 1998 net earnings;

WHEREAS, the Secretary of Finance recommended, pursuant to Section 5 of RA No. 7656, the adjustment on the percentage of annual net earnings that shall be declared by the Land Bank of the Philippines and the Development Bank of the Philippines in the interest of national economy and general welfare.

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The percentage of net earnings to be declared and remitted by the Land Bank of the Philippines and the Development Bank of the Philippines as dividends to the National Government, as provided for under Section 3 of Republic Act 7656, is adjusted from at least fifty percent (50%) to the rates specified hereunder:

1. Land Bank of the Philippines 6% (cash)
2. Development of the Philippines 30% (cash)

SECTION 2. The adjusted dividend rates provided for under Section 1 shall only be applicable on 1998 net earnings of the concerned government-owned and/or controlled corporations.

SECTION 3. This Executive Order shall take effect immediately.

Adopted: 27 July 1999

(SGD.) JOSEPH E. ESTRADA
President

BY THE PRESIDENT:

(SGD.) RONALDO B. ZAMORA
Executive Secretary