WHEREAS, it is the objective of the Government to bring about economic recovery as early as possible to achieve growth and stability throughout the country;

WHEREAS, to gain this objective, the Government realizes the immediate need to promote and foster renewed foreign investments and for this purpose has encourage proposals from international investment counselors;

WHEREAS, in response to the foregoing, certain foreign banks, investment banks and other financial institutions have initiated moves and in fact have adopted certain concrete measures to encourage investments via the debt-to-equity conversion program and/or the privatization scheme of the Philippine Government;

WHEREAS, in consideration of the services to be rendered by the said foreign banks, investment banks and other financial institutions, the Government may agree to provide reasonable incentive fees under certain terms and conditions as may be set forth;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:

Section 1. The Department of Finance, in coordination with the Central Bank of the Philippines is hereby authorized to pay reasonable incentive fees to foreign banks, investment banks and other financial institutions in the manner as may be agreed upon, for services that may be rendered in support to programs that will help achieve the objectives of encouraging foreign investments through the debt-to-equity conversion program and/or the privatization scheme of the Philippine Government.

Section 2. Such sums and money or so much thereof as may be necessary to pay the reasonable incentive fees provided for in Section 1 hereof shall be taken out of the proceeds to be realized under Schedules 4 and 5 Central Bank Circular No. 1111, dated August 4, 1986.

Section 3. This Executive Order shall take effect immediately.

Done in the City of Manila, this 25th day of July, in the year of our Lord, Nineteen Hundred and Eighty-Seven.


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary