PRESCRIBING THE SALARY OF THE PRESIDENT OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION

WHEREAS, the Philippine Deposit Insurance Corporation (PDIC) was
created pursuant to Republic Act No. 3591, as amended, to provide
insurance protection to bank depositors, to promote safe and banking
practices in cooperation with the Bangko Sentral ng Pilipinas (BSP), to
provide financial assistance to distressed banks, and to be mandatory
receiver and liquidator of closed banks;

WHEREAS, to carry out these missions effectively, particularly in
times of stress in the banking system, PDIC needs highly competent
professionals of integrity with appropriate knowledge and skills in such
areas as banking and finance, asset management and appraisal, disposal
of assets and liquidation of liabilities, investigation of bank frauds,
as well as information technology, which professionals have to be
sourced from an intensely competitive labor market;

WHEREAS, PDIC and BSP perform complementary roles in the promotion
and maintenance of a strong and stable banking system entailing
similarities in bank supervision functions, and with PDIC primarily
responsible for the functions pertaining to deposit insurance, financial
assistance to distressed banks, and bank receivership and liquidation;

WHEREAS, PDIC is financially self-sufficient and fully capable of
funding the incremental compensation adjustments of its personnel solely
from its resources without recourse to the national government;

WHEREAS, Section 2-A of Republic Act No. 3591, as amended, authorizes
the President of the Republic of the Philippines to fix the salary of
the president of PDIC at a sum commensurate to the importance and
responsibility attached to the position and the sum total of the salary
of the president of PDIC and the allowances and other emoluments which
the Board of Directors of PDIC may grant him shall then be the ceiling
of fixing by the PDIC Board of Directors of the salary, allowances and
other emoluments of all other personnel in the Corporation.

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

SECTION 1. The basic salary of the president
of PDIC shall be fixed at an amount equal to that of the Governor of the
BSP, currently at P150 ,000, effective January 1, 1999, exclusive of
allowances and other emoluments as have been granted or hereafter to be
granted by the Board of Directors of PDIC, and hereby further delegates
to said Board the authority to adjust the basic salary of the president
of PDIC with each change in the salary of the latter (BSP Governor).

SECTION 2. The Board of Directors of PDIC
shall review the allowances and other emoluments thus established by the
Board, together with his salary as fixed herein, which shall be the
ceiling for fixing the salary, allowances and other emoluments of all
other personnel in the Corporation by the PDIC Board of Directors,
outside the purview of the Salary Standardization Law (Republic Act No.
6758), effective January 1, 1999.

Adopted: 23 Nov. 1999

By the President:

(SGD.) RONALDO B. ZAMORA
           Executive Secretary