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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
House Bill No. ________ 
Introduced by Representative JOEY SARTE SALCEDA 
AN ACT  
PROVIDING FOR GOVERNMENT FINANCIAL INSTITUTIONS 
UNIFIED INITIATIVES TO DISTRESSED ENTERPRISES FOR ECONOMIC 
RECOVERY (GUIDE) 
EXPLANATORY NOTE 
The National Government was constrained to enforce a massive shutdown of economic 
activities, which adversely affected various critical industries, and triggered an economic 
downturn in order to contain the spread of the 2019 Novel Coronavirus Disease (COVID-19) 
across the country. The State enacted measures that support economic recovery and 
maintaining employment levels. The proposed legislative measure seeks to strengthen the 
capacity of the following Government Financial Institutions, namely: Philippine Guarantee 
Corporation (PGC), the Land Bank of the Philippines (LBP), and the Development Bank of the 
Philippines (DBP), in order to provide the needed assistance to micro, small, and medium 
enterprises ("MSMEs"), and other strategically important companies. 
According to the latest available data published by the Philippine Statistics Authority, 
a total of 1,003,111 business enterprises were recorded as operating in the Philippines in 2018. 
It is worth noting that 998,342, which accounts for 99.52% of these recorded businesses, are 
MSMEs. Micro enterprises constitute 88.45% with 887,272 of total MSME establishments, 
followed by small enterprises at 10.58% with 106,175 establishments, and medium enterprises 
at 0.49% with 4,895 establishments. The top five (5) industry sectors according to the number 
of MSMEs in 2018 were: 
(1) wholesale and retail trade; repair of motor vehicles and motorcycles (461,765);
(2) accommodation and food service activities (144,535);
(3) manufacturing (116,335);
(4) other service activities (66,162); and
(5) financial and insurance activities (46,033). These industries accounted for about
83.62% of the total number of MSME establishments.
Together, these MSMEs generated a total of S,7 million jobs or 63.19% of the country's 
total Employment. With the imposition of enhanced community quarantine in Luzon, and in 
several provinces, cities, and municipalities in Visayas and Mindanao, only private 
July 1, 2022 
8:00 am
685


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establishments providing basic necessities and essential services were allowed to remain open. 
When the COVID-19 pandemic hit our shores, it is apparent that MSMEs will be heavily 
impacted.  
To this end, the government financial institutions are mandated to expand their credit 
programs in order to assist affected MSMEs to meet their liquidity needs. In particular, LBP 
and DBP are mandated to expand their credit and rediscounting facilities to affected MSMEs 
in the agriculture, infrastructure and manufacturing industries, and PC to expand its credit 
guarantee facilities. 
Notably, not only MSMEs play an important role in the economic recovery of the 
country. In 2018, large enterprises generated 3.3 million jobs or 36.81% of the country's overall 
employment. Enterprises, whether MSMEs or large enterprises, were heavily impacted by the 
disruption in travel and transport of goods and services as a result of the COVID-19 outbreak. 
These enterprises which belong to or operate in certain industries or sectors that are 
strategically important to economic recovery would require financial assistance in order to 
ensure their continued viability and, in turn, create a ripple effect to reverse the economic 
downturn. 
In addition, the proposed bill authorizes LBP and DBP to create a special holding 
company which aims to further reinvigorate these strategically important companies heavily 
affected by the COVID-19 pandemic. Equity participation in this special holding company may 
be held by qualified private sector investors. However, to ensure that the policies and objectives 
under the proposed bill are effectively carried out, LBP and DBP are mandated to maintain at 
least a majority ownership over the special holding company until such time that they have 
recovered their investment. 
The special holding company is intended to be a major player in the financial and capital 
markets by providing aid to strategically important companies with solvency/liquidity issues 
brought about by COVID-19 pandemic. For this purpose, the special holding company shall be 
authorized to invest or place funds in equity, execute convertible loans or purchase convertible 
bonds and/or other securities, in said strategically important companies, as well as to 
incorporate subsidiaries. Nevertheless, to ensure that such investments are properly utilized, as 
well is to ensure the successful rehabilitation of strategically important companies, the 
legislative measure imposes restrictions on the investee company by requiring that the number 
of employees are not reduced beyond a certain level, limiting its ability to declare dividends, 
restricting the increase in salary, separation and retirement pay, and other benefits of the board 
and its senior officers, and ensuring thirt investments of LBP and BP are not diluted and time-
bound with a definite exit mechanism, among others. 
This legislative measure provides for the appropriation of Fifty-Five Billion Pesos 
(PhP55,000,000,000.00) to increase the capitalization of PC, LBP, and DBP. Of said sum, Five 
Billion Pesos (PhP5,000,000,000.00) shall be infused as additional capital to PC, and Fifty 
Billion Pesos (PhP50,000,000,000.00) shall be infused as additional capital to LBP and DBP. 
To ensure that the objectives of the proposed legislative measure will be effectively and 
efficiently achieved, certain exemptions are granted to PC, LBP, DBP, and the special holding 
company for pertinent transactions in the exercise of their respective mandate and functions 
under the proposed bill. In particular, procurement to be undertaken by PGC, LEP, DBP, and 
the special holding company, including the latter's subsidiaries, shall be exempt from the 


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provisions of Republic ("Rep.") Act No. 9184 or the "Government Procurement Reform Act" 
for its period of three (3) years. Acquisitions of assets of an investee company by the special 
holding company pursuant to its powers under the proposed bill shall likewise be exempted 
from Rep. Act No. 10667 or the "Philippine Competition Act" for a period of three (3) years. 
Moreover, the special holding company, as well as its subsidiaries, shall be exempt from the 
provisions of Rep. Act No. 10149 or the "GOCC Governance Act of 2011." Finally, the 
Monetary Board of the Bangko Sentral ng Pilipinas may exempt PGC, DBP and LBP from 
ratios, ceilings and limitations under Rep. Act No. 8791, for a period of five (5) years, subject 
to extension and such conditions as may be prescribed by the Monetary Board. 
Furthermore, the proposed law extends support to PGC, DBP, LBP, and the special 
holding company, including its subsidiaries, by granting tax exemptions and reduced 
registration and transfer fees relating to sales or transfers of rediscounted loans/other credit 
accommodations– considering the state of the economy and the urgent need to provide 
assistance to MSMEs and other strategically important companies. 
In view of the foregoing, passage of this measure is earnestly sought. 
JOEY SARTE SALCEDA 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
House Bill No. ________ 
Introduced by REP. JOEY SARTE SALCEDA 
AN ACT  
PROVIDING FOR GOVERNMENT FINANCIAL INSTITUTIONS 
UNIFIED INITIATIVES TO DISTRESSED ENTERPRISES FOR ECONOMIC 
RECOVERY (GUIDE) 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. – This Act shall be known as the “Government Financial Institutions 
(GFIs) Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act.” 
SEC. 2. Declaration of Policy. – The substantial disruption of the economy due to the 
community quarantine measures restricted the operation of numerous businesses. 
The State recognizes the role of these businesses composed of micro, small and medium 
enterprises (MSMEs) and strategically important companies in providing employment to the 
Filipino people and in supporting the Philippine economy. Thus, it is essential that these 
enterprises are given necessary access to credit and financial assistance. It is hereby declared 
the policy of the State to protect employment and assist distressed enterprises in order to 
reinvigorate the economy. 
SEC. 3. Definition of Terms. – As used in this Act: 
(a) Agribusiness value chain refers to a set of actors/players, such as farmers, fisherfolk,
traders, suppliers, processors, and aggregators, who make up the linked sequence of value-
adding activities undergone by an agricultural product when converted from raw material to 
the final form it is presented to the consumers; 
(b) Micro, Small and Medium Enterprise (MSME) refers to any business activity or
enterprise engaged in industry, agribusiness and/or services, whether single proprietorship, 
cooperative, partnership or corporation whose total assets, inclusive of those arising from loans 
but exclusive of the land on which the particular business entity’s office, plant and equipment 
are situated, must have value falling under the following categories: 
micro 
: 
not more than PhP3,000,000 
small 
: 
PhP3,000,001 – PhP15,000,000 
medium 
: 
PhP15,000,001 – PhP100,000,000 
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(c) Senior executive officers refer to top management officials exercising responsible 
and critical roles, as may be described further in the rules and regulations to be issued to 
implement this Act. 
 
 
CHAPTER 1 
PHILIPPINE GUARANTEE CORPORATION  
 
 
SEC. 4. Loan Guarantee Expansion by the Philippine Guarantee Corporation. – The 
Philippine Guarantee Corporation (PGC) shall expand its guarantee program for MSMEs 
heavily affected by the corona virus disease-19 (COVID-19) pandemic by increasing the 
maximum loan guarantee coverage per borrower and reducing guarantee fees and other similar 
schemes. 
 
 
The guarantee program of PGC should meet the applicable prudential standards and 
regulations of the Bangko Sentral ng Pilipinas (BSP). 
 
 
SEC. 5. Additional Subscription by the National Government. – For the implementation 
of Section 4 of this Act, the National Government shall increase its subscription to PGC’s 
authorized capital stock by an additional Twenty billion pesos (PhP20,000,000,000.00): 
Provided, That Five billion pesos (PhP5,000,000,000.00) of this amount shall be paid for by 
the National Government upon the effectivity of this Act, with the balance to be paid from 
succeeding appropriations for this purpose. 
 
 
CHAPTER 2 
DEVELOPMENT BANK OF THE PHILIPPINES 
 
 
SEC. 6. Loan Assistance Program of the Development Bank of the Philippines (DBP). 
– The DBP shall expand its loan program for qualified MSMEs affected by the COVID-19 
pandemic: Provided, That such loans shall be granted in accordance with the rules and 
regulations to be issued to implement this Act and the following guidelines:  
 
(a) Eligible MSMEs should be engaged in infrastructure, service industry, and/or 
manufacturing business; and 
 
(b) The loans to eligible MSMEs should meet the applicable prudential standards and 
regulations of the BSP. 
 
The DBP shall likewise extend loans to local government units (LGUs) subject to 
existing rules and regulations. 
 
 
SEC. 7. DBP Rediscounting and other Programs. – Subject to applicable prudential 
standards and regulations of the Bangko Sentral ng Pilipinas (BSP), the DBP may rediscount 
loans and other credit accommodations to enterprises enumerated in Section 6(a) of this Act, 
granted by BSP- supervised financial institutions (BSFIs),  the Small Business Corporation 
(SBC), and those granted pursuant to credit programs of the Department of Agriculture-
Agricultural Credit Policy Council (ACPC) to MSMEs affected by the COVID-19 pandemic 
engaged in infrastructure, service industry, and/or manufacturing business. 


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The DBP may undertake other similar activities as may be provided under the rules and 
regulations to be issued to implement this Act. 
 
 
SEC. 8. Increase in DBP’s Authorized Capital Stock. – Section 7 of Executive Order 
No. 81, as amended by Republic Act No. 8523, otherwise known as “The 1986 Revised Charter 
of The Development Bank of The Philippines”, as amended, is hereby further amended to read 
as follows: 
  
“Section 7. Authorized Capital Stock-Par Value. The capital stock of the Bank 
shall be [Thirty-five billion pesos  (P35,000,000,000.00)] ONE HUNDRED 
BILLION PESOS (PHP100,000,000,000.00) to be divided into [Three 
hundred fifty million (350,000,000)] ONE BILLION (1,000,000,000) 
common shares with par value of One hundred pesos (PhP100.00) per share, 
which shall be fully subscribed by the nNational gGovernment: [Upon the 
effectivity of this Charter, the National Government shall initially subscribe to 
One hundred twenty-five million (125,000,000) common shares of stock worth 
Twelve billion five hundred million pesos (P12,500,000,000.00), Five billion 
pesos (P5,000,000,000.00) of which shall be deemed paid for by the 
government and the balance shall be paid for by the government out of the stock 
dividends to be declared by the Bank from its unappropriated retained earnings: 
Provided, That the dividends due the national government pursuant to Republic 
Act No. 7656 shall first be paid].] PROVIDED, THAT IN ADDITION TO 
THE EXISTING PAID UP CAPITAL, AN ADDITIONAL FIFTEEN 
BILLION 
PESOS 
(PHP15,000,000,000.00) 
INCREASE 
IN 
CAPITALIZATION SHALL BE FULLY PAID FOR BY THE 
NATIONAL GOVERNMENT UPON THE EFFECTIVITY OF THIS 
ACT, THE BALANCE THEREOF TO BE PAID FROM SUCCEEDING 
APPROPRIATIONS FOR THIS PURPOSE.” 
 
 
CHAPTER 3 
LAND BANK OF THE PHILIPPINES 
 
 
SEC. 9. Loan Assistance Program of the Land Bank of the Philippines (LandBank). – 
The LandBank shall expand its loan program for qualified MSMEs affected by the COVID-19 
pandemic: Provided, That such loans shall be granted in accordance with the rules and 
regulations that shall be issued to implement this Act, and the following guidelines: 
  
(a) Eligible MSMEs should be engaged in activities in the agribusiness value chain; 
and 
 
(b) The loans to eligible MSMEs should meet the applicable prudential standards and 
regulations of the BSP. 
 
The LandBank shall likewise extend loans to LGUs subject to existing rules and 
regulations. 
 
 
SEC. 10. LandBank Rediscounting and other Programs. – Subject to applicable 
prudential standards and regulations of the BSP, the LandBank may rediscount loans to eligible 
MSMEs engaged in activities in the agribusiness value chain granted by BSFIs, the SBC, and 


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those granted pursuant to credit programs of the DA-ACPC to MSMEs affected by the COVID-
19 pandemic.  
 
The LandBank may undertake other similar activities for purposes of this Act as may 
be provided under the implementing rules and regulations to be issued. 
 
 
CHAPTER 4 
SPECIAL HOLDING COMPANY 
 
 
SEC 11. Creation of Investment Vehicle. – To ensure that strategically important 
companies remain solvent, the LandBank and DBP are hereby authorized to invest in, or enter 
into a joint venture agreement to incorporate a special holding company, to be known as 
Accelerating Recovery to Intensify Solidarity and Equity, Inc. or ARISE, that is a stock 
corporation to be organized under Republic Act No. 11232, otherwise known as “The Revised 
Corporation Code of the Philippines.” The establishment, administration, and operation of the 
special holding company shall be governed by the following principles: 
 
(a) The purpose of the special holding company is to rehabilitate strategically important 
companies affected by the COVID-19 pandemic which are experiencing solvency issues, such 
as those with considerable impact on the economy including those from the agriculture, 
infrastructure, service industry, and manufacturing industries and other industries to be 
identified in the implementing rules and regulations; 
 
(b) Equity participation in the special holding company may be offered to, and held by, 
qualified private sector investors, including multilateral companies and lending institutions, as 
may be determined by the LandBank and DBP: Provided, That majority ownership of the total 
outstanding capital stock in the special holding company shall be held by the LandBank and 
DBP until such time that they have recovered or will be able to recover their investment in the 
special holding company; 
 
(c) The LandBank and the DBP shall dispose of their stockholdings in the special 
holding company to qualified private sector investors as they may determine. The LandBank 
and DBP shall provide equal opportunity for equity participation in the special holding 
company to all qualified investors, including multilateral companies and lending institutions. 
When private shareholdings in the special holding company reaches fifty percent (50%) of the 
total outstanding capital stock, the stockholders thereof shall cause the adoption and 
registration with the SEC of the company’s amended articles of incorporation within three (3) 
months from such transfer of ownership; 
 
(d) The special holding company shall establish and adopt accounting and auditing 
systems and standards which are consistent with the appropriate and applicable guidelines of 
the Commission on Audit (COA) and which, in any case, shall be as uniform as possible and 
shall conform with law and with generally accepted accounting principles and sound auditing 
practices: Provided, That the audit of the special holding company by the COA shall not 
preclude said special holding company from engaging the services of private auditing firms: 
Provided, however, that even if the services of the latter are availed of, the audit report of the 
COA shall serve as the report for purposes of compliance with audit requirements as required 
of government-owned or controlled corporations under applicable law; 
 


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(e) The special holding company shall devise mechanisms that shall protect the 
Government’s investment, such as issuing a special class or series of shares, or entering into 
shareholders’ or voting share agreements for the purpose as provided in the rules and 
regulations issued to implement this Act.  
 
 
SEC. 12. Powers of the Investment Vehicle. – The special holding company shall have 
the powers granted to a stock corporation under Republic Act No. 11232. In addition, the 
special holding company shall have the authority to create subsidiaries. Equity participation in 
the subsidiaries may also be offered to, and held by qualified private sector investors, including 
multilateral companies and lending institutions. For as long as the majority of the total 
outstanding capital stock of the subsidiaries is held by the Government directly or through its 
instrumentalities, said subsidiaries shall be subject to the provisions of this Act and shall enjoy 
all the incentives and exemption privileges of the special holding company under this Act. 
 
 
Furthermore, the power of the special holding company and its subsidiaries to invest 
shall be subject to the following investment guidelines: 
 
(a) To avoid undue risk concentration from excessive exposures, the investment of the 
special holding company in an investee company and the total investment in companies 
belonging to the same industry or sector shall be subject to a ceiling in relation to its net income 
or capital as prescribed under the implementing rules and regulations; 
 
(b) The special holding company can only invest in corporations engaged in 
strategically important industries or sectors that are experiencing liquidity issues because of 
the COVID-19 pandemic, such as those with considerable impact on the economy, including 
those from the agriculture, infrastructure, services, manufacturing and other industries to be 
identified in the rules and regulations issued to implement this Act; 
 
(c) Such investment shall be in the form of (i) limited equity participation by 
subscription or acquisition of shares, (ii) execution of convertible loans or purchase of 
convertible bonds; and/or (iii) such other securities as may be issued by the investee 
corporations, acceptable to the DBP and LandBank; and 
 
(d) The investee company is eligible based on the requirements in this Section and in 
Section 15 of this Act. 
 
 
SEC 13. Board of Directors of the Special Holding Company. – The powers and 
authority of the special holding company shall be vested in, and exercised by a Board of 
Directors, hereinafter referred to as the “Board,” composed of nine (9) members, as follows: 
 
(a) The Secretary of Finance; 
 
(b) The President of the LandBank; 
 
(c) The President of DBP; 
 
(d) A director to be appointed by the Monetary Board of the BSP; 
 
(e) Two (2) independent Directors; 
 


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(f) Three (3) directors who shall be appointed by the LandBank, DBP, and the private 
equity investor(s), if any, in proportion to the voting shares held in the special holding 
company. 
 
The members of the Board shall elect from among themselves the Chairperson and the 
Vice-Chairperson. The ex-officio members of the Board may designate their respective 
representatives who shall exercise the powers of a director. 
 
Once the private shareholdings in the special holding company reaches fifty percent 
(50%) of the total outstanding capital stock, subject to the proviso of Chapter 4, Section 11(b) 
of this Act, the company shall cease to be a government-owned and -controlled corporation, 
the ex-officio directors will cease to be members of the Board, and the membership of the Board 
shall be based on the election of the directors by the voting shares held by the shareholders, 
pursuant to the provisions of Republic Act No. 11232. 
 
The Board shall provide for an organization and staff of officers and employees of the 
special holding company and fix their remunerations and other emoluments. All positions in 
the special holding company shall be governed by the compensation, position classification 
system and qualification standards approved by the Board based on a job analysis of actual 
duties and responsibilities. The compensation plan shall be comparable with the prevailing 
compensation plans in the private sector and shall be subject to periodic reviews once every 
two (2) years, without prejudice to early merit or increases based on the special holding 
companies’ productivity and profitability. The special holding company, being a government-
owned-and-controlled corporation, shall therefore be exempt from existing laws and the rules 
and regulations on compensation, position classification and qualification standards in the 
government service.   
 
 
SEC. 14. Responsibility of the Board and the Employees of the Special Holding 
Company and its Subsidiaries. – The Board shall set appropriate standards and corporate 
governance for the investee companies that the special holding company or its subsidiaries will 
invest in. The Board shall likewise institute mechanisms to oversee that such standards are 
followed by the investee company. 
 
 
The general rule and the exception therefrom on the liability of public officers as 
provided in Sections 38 and 39 of Chapter 9, Book 1 of the Revised Administrative Code of 
1987 shall apply to the members of the Board and other personnel of the special holding 
company. Unless the actions or omissions of the special holding company, members of the 
Board and its other personnel are finally adjudged to be in wilful violation of this Act, 
performed in evident bad faith or with gross negligence, they shall be held free and harmless 
to the fullest extent permitted by law from any liability, and they shall be indemnified for any 
and all liabilities, losses, claims, demands, damages, deficiencies, costs and expenses of 
whatsoever kind and nature that may arise in connection with the exercise of their powers and 
performance of their duties and functions. 
 
 
SEC 15. Requirements for the Investee Company. – To be eligible, the investee 
company must not be a party to any pending tax-related cases in court for tax collection or tax 
evasion, must not be a debtor in any bankruptcy proceeding prior to the enhanced community 
quarantine period, and must not be insolvent and is capable of being rehabilitated as determined 
by the special holding company. 
 


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The agreement between the special holding company and the investee company must 
contain the following minimum conditions: 
 
(a) The investee company must not reduce the number of employees beyond the 
percentage prescribed by the special holding company; 
 
(b) The investee company shall not, without prior authority from the special holding 
company, be allowed to issue stock dividends and repurchases during the term of the 
investment; 
 
(c) The investee company shall not issue cash dividends during the term of the 
investment; 
 
(d) The investee company must not increase the salaries, benefits and other forms of 
remuneration of its senior executive officers and members of its board; 
 
(e) The investee company shall not provide or grant senior executive officers and 
members of its Board separation pay or retirement pay: Provided, That any amount received 
by the senior executive officers and members of the board which is in violation of the foregoing 
shall be returned; 
 
(f) The investee company shall not incur irregular, unnecessary, excessive, extravagant 
or unconscionable expenditures such as entertainment, events, office/facility renovations, 
aviation/transportation services and other activities; 
 
(g) The ownership of either the LandBank or  DBP, or both, in the investee company 
shall not be diluted and a provision protecting the value of the shares of the LandBank or DBP 
or both from market transactions such as stock splits, mergers and other forms of 
reorganization and recapitalization shall be included in the agreement; and 
 
(h) The investment in the investee company shall be time-bound with a definite exit 
mechanism. 
 
Provided, further, That additional conditions and provisions may be imposed by the 
special holding company to ensure that the investment will be properly utilized and ensure the 
successful rehabilitation of the investee company. 
 
 
 CHAPTER 5 
INCENTIVES AND EXEMPTION PRIVILEGES  
OF THE DBP, LANDBANK, AND SPECIAL HOLDING COMPANY 
 
 
SEC. 16. Tax Exemptions and Fee Privileges. – Any existing law to the contrary 
notwithstanding and in order to ensure the effective implementation of the purposes of this Act, 
the following transactions of the DBP, LandBank and the special holding company, and its 
subsidiaries, shall be exempt from documentary stamp tax, capital gains tax, creditable 
withholding income tax, value-added tax, gross receipts tax, and such other taxes that may be 
imposed under Republic Act No. 8424, or the “National Internal Revenue Code of 1997”, as 
amended, whichever is applicable pursuant to the regulations to be issued by the DOF, upon 
the recommendation of the Bureau of Internal Revenue (BIR): 


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(a) Loan Assistance Program, Rediscounting and other Programs of the DBP and 
LandBank under Chapters 2 and 3 of this Act, respectively, including dation in payment 
(dacion en pago) by the borrower or by a third party in favor of the DBP and the LandBank. 
 
(b) Transactions of the special holding company and its subsidiaries as to its: 
 
(i) 
subscription or acquisition of shares; 
 
(ii) execution of convertible loans or purchase of convertible bonds;   
 
(iii) such other securities as may be issued by the investee 
corporations, acceptable to DBP and LandBank; and  
 
(iv) acquisitions of assets of an investee company.  
 
The abovementioned transfers shall also be subject to the following, in lieu of the 
applicable fees: 
 
(a) Fifty percent (50%) of the applicable mortgage registration and transfer fees on the 
transfer of real estate mortgage and security interest to and from the special holding company 
and its subsidiaries, as imposed in accordance with the existing circulars of the Land 
Registration Authority (LRA); 
 
(b) Fifty percent (50%) of the filing fees for any foreclosure initiated by the DBP and 
LandBank in relation to loan assistance and rediscounting programs as prescribed by the Rules 
of Court; and 
 
(c) Fifty percent (50%) of the land registration fees prescribed under the existing 
circulars of the LRA. 
 
All sales or transfers of rediscounted loans and other credit accommodations, including  
transfers by way of dation in payment by the borrower or by a third party to the DBP, LandBank 
and the transfer of assets to  the special holding company and its subsidiaries, shall be entitled 
to the privileges enumerated herein for a period of not more than three (3) years from the date 
of effectivity of the applicable implementing rules and regulations or of the applicable revenue 
regulations, whichever comes later: Provided, That the Secretary of Finance may extend such 
period by a maximum of three (3) years. 
 
Furthermore, subsequent transfers of the foregoing from the DBP, LandBank, and the 
special holding company and its subsidiaries to a third party shall enjoy the privileges 
enumerated herein for a period of not more than three (3) years from the date of acquisition by 
the DBP, LandBank, and the special holding company and its subsidiaries: Provided, That the 
Secretary of Finance may extend such three-year period by a maximum of three (3) years. 
 
 
SEC. 17. Emergency Procurement under the Government Procurement Reform Act. – 
In order to ensure the expeditious implementation of their mandates under this Act, 
procurement activities undertaken by the PGC, LandBank, or DBP, and the special holding 
company and their subsidiaries undertaken in light of the COVID-19 pandemic and pursuant 
to their mandate and functions as defined in this Act, shall adopt the rules under Negotiated 


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Procurement under Emergency Cases under Section 53(b) of Republic Act No. 9184, or the 
“Government Procurement Reform Act” for a period of three (3) years from the effectivity of 
the implementing rules and regulations to be issued under Chapter 6, Section 21 of this Act. 
 
 
SEC 18. Other Exemptions of the Special Holding Company. – The special holding 
company and its subsidiaries shall be exempt from the provisions of Republic Act No. 10149, 
or the “GOCC Governance Act of 2011.” 
 
 
Further, transactions by the special holding company and its subsidiaries shall be 
exempt from the provisions of Republic Act No. 10667, or the “Philippine Competition Act” 
for a period of three (3) years from its incorporation: Provided, That this exemption shall only 
apply to acquisitions of assets of an investee company by the special holding company and its 
subsidiaries pursuant to its powers under this Act. 
 
 
CHAPTER 6 
MISCELLANEOUS PROVISIONS 
 
 
SEC. 19. Ratios, Ceilings, and Limitations. – For purposes of this Act, the Monetary 
Board may exempt PGC, DBP and LandBank from such ratios, ceilings and limitations, 
provided under Republic Act No. 8791 or the “The General Banking Law of 2000,” for a period 
as may be determined by the Monetary Board, subject to such conditions as may be prescribed 
by the Monetary Board. 
 
 
SEC 20. Appropriations. – The amounts necessary for the following purposes shall be 
deemed automatically appropriated and shall be sourced from the savings generated under Sec. 
4 (v), (w), (x) and (y) of the Republic Act No. 11469 or the “Bayanihan to Heal as One Act” 
authorizing the President to direct the discontinuance of appropriated programs, projects or 
activities of any agency of the executive department, including government-owned-or-
controlled corporations  and special purpose funds,  and the General Appropriations Acts 
(GAA) for  fiscal years 2019 to 2020, whether released or unreleased, the allotments for which 
remain unobligated: 
 
(a) The amount of Five Billion Pesos (PhP5,000,000,000.00) is hereby appropriated as 
additional paid-up capital of PGC: Provided, That this amount shall be used for the purposes 
of providing loan guarantees under Chapter 1 of this Act;  
 
(b) The amount of Fifteen Billion Pesos (PhP15,000,000,000.00) is hereby appropriated 
for the implementation of Chapters 2 and 4: Provided, That this amount shall be applied as 
additional paid-up capital of the DBP, for the purposes of lending under the loan assistance 
program to qualified MSMEs, its rediscounting and other programs, and the creation of the 
special holding company; 
 
(c) The amount of Thirty-Five Billion Pesos (PhP35,000,000,000.00) is hereby 
appropriated for the implementation of Chapters 3 and 4: Provided, That this amount shall be 
applied as additional paid-up capital of LandBank, for the purposes of lending under the loan 
assistance program to qualified MSMEs, rediscounting and other programs of LandBank, 
and/or the creation of a special holding company. 
 


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SEC. 21. Implementing Rules and Regulations. – Within thirty (30) days from the 
effectivity of this Act, the DOF, together with the BIR, the BSP, the SEC, the DBP, and the 
LandBank shall jointly promulgate the necessary rules and regulations for the effective 
implementation of this Act: Provided, That the DOF may call upon any agency to provide 
information or assistance in the drafting of the rules and regulations: Provided, Further, That 
within thirty (30) days from the effectivity of this Act, the DOF, upon recommendation of the 
BIR, shall promulgate the revenue regulations implementing the fiscal incentives under this 
Act. 
 
 
SEC 22. Oversight Committee. – There is hereby created a Joint Congressional 
Oversight Committee (JCOC) to oversee, monitor, and evaluate the implementation of this Act. 
The JCOC shall be composed of five (5) members each from the House of Representatives and 
from the Senate. The JCOC shall be co-chaired by the Chairpersons of the House Committee 
on Banks and Financial Intermediaries and the Senate Committee on Banks, Financial 
Institutions and Currencies. The Speaker and the Senate President shall designate the other four 
members of the JCOC of the House and the Senate from among the members of the House 
Committee on Banks and Financial Intermediaries and the Senate Committee on Banks, 
Financial Institutions, and Currencies, at least one member of which shall be from the minority. 
 
 
SEC. 23. Separability Clause. – If any provision of this Act is held unconstitutional or 
invalid, all other provisions not affected thereby shall remain valid. 
 
 
SEC. 24. Repealing Clause. – All laws, decrees, executive orders, rules and regulations 
or parts thereof, which are inconsistent with this Act, are hereby repealed, amended or modified 
accordingly. 
 
 
SEC. 25. Effectivity. – This Act shall take effect immediately upon its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
Approved,