Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Thirteenth Congress
First Regular Session

HOUSE BILE NO. 164

Introduced by Honorable Constantino G. Jaraula

PLANATORY NOTE

This Bill was filed with the 11" Congress as House Bill No. 7804 and the 12"
Congress as House Bill No. 1194, with the following Explanatory Note:

“This Bill secks to free the Filipino from the burdens of onerous, unreasonable, or
unconscionable debts or obligations, which have devastatingly derailed the economy of
the country, painfully sapped the patience of the Filipino, and unnecessarily compromised
his faith in government, such as but not limited to the ACCOUNT of the Bataan Nuclear
Power Plant.

“The Bill does not intend to revive bitter political debates, or scratch partisan
wounds, arising from or occasioned by those debts or obligations

“The Filipino has suffered for long, and suffered bitterly from the burdens of those
debts or obligations which have eaten up as much as thirty to forty percent of the annual
national budget, made conveniently and conte! plibly by the automatic appropriation
provision in Presidential Decree No. 1177, specifically Section 31 (b) thereof’ and similar
laws, decrees, executive and administrative orders, or circulars.

“The billions of pesos from taxes paid by an impoverished populace, devoted to
servicing onerous, unreasonable, or unconscionable debts or obligations in the last fifieen
years. would have readily propelled the Republic into becoming an industrialized country,

Those billions of pesos would have provided houses to the teeming millions of
hometess Filipinos, would have saved the miltions who have to work abroad, risking their
lives and the solidarity of their families, from leaving their native land, and would have
saved thousands of Filipinos from prostitution and other degrading “livelihood”, to
mention only a few.

“This Bill secks to restore the respectability of the Filipina without necessarily
compromising the country’s international image.

“It has been done in other countries, like Poland, Brazil, and Mexico. ‘The
Philippines must do nothing less, and deserves nothing less." /

Where the 11° and 12" Congress failed, it is imperative the 13" Co gress pucceed-
in approving this Bill

CONSTANTIN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Thirteenth Congress
First Regular Session
HOUSE BILLNO. 164

Introduced by Honorable Constantino G. Jaraula

AN ACT
DECLARING AS NATIONAL POLICY THE FREEDOM OF TH
FROM ONEROUS, UNREASONABLE, AND UNCONSCIONABLE DEBT OR
OBLIGATION, REPEALING FOR THE PURPOSE SECTION 31 (b) OF PD 1177
AND SIMILAR LAWS, DECREES, EXECUTIVE D ADMINISTRATIVE.
ORDERS, AND CIRCULARS.

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION. 1 Declaration of Policy. it is hereby declared to be National Policy
that the Filipino be freed from the burdens of onerous, unreasonable, and unconscionable
debts or obligations

SECTION. 2 Section 31 (b) of Presidential Decree No. 1177 and similar laws,
decrees, executive orders, administrative orders, or circulars, arc hereby repealed.

SECTION. 3. Provisions in the annual budget for debt servicing shall be limited to
loans or obligations which are not oncrous, unreasonable, or unconscionabie.

SECTION 4. An Ad Hoc Committee shall immediately be organized with the
Secretary of Finance, Trade and Industry, NEDA, two Senators to be designated by the
Senate President and two Representatives to be designated by the Speaker, is hereby
created to evaluate and identify those debts or obligations which are onerous,
unreasonable, or unconscionable and therefore not entitled to debt servicing or automatic
appropriation.

SECTION 5. The Ad Hoc Committee shall immediately be organized with the
Secretary of Finance as Chairman who shall convene the same within fifteen (15) days
from the approval hereof, and shall make monthly reports to both Houses of Congress and
to the President, It shall undertake massive and sustained campaign for the condonation or
writing off of the aforementioned debts or obligations. It shall wind up its tasks within
one year from its organization.

SECTION 6. The amount of FIVE MILLION PESOS (P5,000,000.00) is hereby
appropriated for the expenses of the AD Hoc Committee.

SECTION 7. This Act shall take effect upon its approval.

Approved,