AMENDING PRESIDENTIAL DECREE NO. 1961

WHEREAS, in furtherance of the National Economic Recovery
Program, the Philippines has agreed to a multi-national arrangement for the
rescheduling of credits made, guaranteed or insured by foreign governments and
their agencies;

WHEREAS, under bilateral agreements being negotiated with or
to be concluded with some creditor countries, foreign currency obligations of
public sector obligors other than the National Government and of private sector
obligors guaranteed by government corporations have to be assumed by. and
consolidated with the foreign currency obligations of the National Government;

WHEREAS, the issuance of this Decree is an essential and
necessary component of the National Economic Recovery Program formulated to meet
and overcome the current economic crisis:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vessed in me by the Constitution, do hereby
directs and order the amendment of Section 13 Presidential Decree No. 1961 to
read as follows:

SECTION 3. In the furtherance of the National Economic
Recovery Program of the Philippines, the Republic of the Philippines, political
subdivisions, and instrumentalities of the Republic of the Philippines, and
corporations, including financial Institution owned or controlled by the
Government of the Republic of the Philippines and corporations more than fifty
percent of the beneficial ownership of which is held by one or more of such
government-owned or controlled corporations, may reschedule, refinance or
restruction their currency loans, credits and indebtedness, including suppliers
credit, deferred payment arrangements and official assistance, upon such terms
and conditions as may be agreed with the lenders, creditors or suppliers. The
Republic of the Philippines may, when authorized by the President in writing,
and on such foreign governments and/or their agencies, refinance or assume the
foreign currency loans made, guaranteed or insured by such foreign governments
and their agencies in favor of: (a) corporations owned or controlled by the
Government of the Republic of the Philippines and corporations more than fifty
percent of the beneficial ownership of which is held by one or more of such
government-owned or controlled-corporations; and (b) Philippine private sector
corporations which guaranteed by government-owned or controlled-corporations,
both in connection with rescheduling, refinancing or restructuring of such
official credits or indebtedness.

This Decree shall take effect immediately.

Done in the City of Manila, this 21st day of June, in the year of Our Lord,
nineteen hundred and eighty-five.