The New Central Bank Act (RA 7653)

CHAPTER VII - TRANSITORY PROVISIONS

SECTION 134. Separation Benefits. — Pursuant to Section 15 of this Act, the Monetary Board is authorized to provide separation incentives, and all those who shall retire or be separated from the service on account of reorganization under the preceding section shall be entitled to such incentives, which shall be in addition to all gratuities and benefits to which they may be entitled under existing laws.

SECTION 135. Repealing Clause. — Except as may be provided for in Section 46 and 132 of this Act, Republic Act No. 265, as amended, the provisions of any other law, special charters, rule or regulation issued pursuant to said Republic Act No. 265, as amended, or parts thereof, which may be inconsistent with the provisions of this Act are hereby repealed. Presidential Decree No. 1792 is likewise repealed.

(d) liabilities to be assumed by the Bangko Sentral shall include liability for notes and coins in circulation as of the effective date of this Act; and

(e) any asset or liability of the Central Bank not transferred to the Bangko Sentral shall be retained and administered, disposed of and liquidated by the Central Bank itself which shall continue to exist as the CB Board of Liquidators only for the purposes provided in this paragraph but not later than twenty-five (25) years or until such time that liabilities have been liquidated: Provided, That the Bangko Sentral may financially assist the Central Bank of Liquidators in the liquidation of CB liabilities: Provided, finally, That upon disposition of said retained assets and liquidation of said retained liabilities, the Central Bank shall be deemed abolished.

All actions taken by the Bangko Sentral Monetary Board under this section shall be reported to Congress and the President within thirty (30) days.

CHAPTER VII - TRANSITORY PROVISIONS

(b) the Bangko Sentral shall remit seventy-five percent (75%) of its net profits to a special deposit account (sinking fund) until such time as the net liabilities of the Central Bank shall have been liquidated through generally accepted finance mechanisms such as, but not limited to, write-offs, set-offs, condonation, collections, reappraisal, revaluation and bond issuance by the National Government, or to the National Government as dividends;

CHAPTER VII - TRANSITORY PROVISIONS

The following guidelines shall be strictly observed in the determination of which assets and liabilities shall be transferred to the Bangko Sentral:

(a) the Monetary Board and the Secretary of Finance shall have primary responsibility for working out creative monetary and financial solutions to retire the Central Bank liabilities and losses at the least cost to the Government;

SECTION 136. Transfer of Powers. — All powers, duties and functions vested by law in the Central Bank of the Philippines not inconsistent with the provisions of this Act shall be deemed transferred to the Bangko Sentral ng Pilipinas. All references to the Central Bank of the Philippines in any law or special charters shall be deemed to refer to the Bangko Sentral.

SECTION 137. Separability Clause. — If any provision or section of this Act or the application thereof to any person or circumstance is held invalid, the other provisions or sections of this Act, and the application of such provision or section to other persons or circumstances, shall not be affected thereby.

SECTION 138. Effectivity Clause. — This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in two (2) national newspapers of general circulation.

CHAPTER VII - TRANSITORY PROVISIONS

SECTION 132. Transfer of Assets and Liabilities. — Upon the effectivity of this Act, three (3) members of the Monetary Board, which may include the Governor, in representation of the Bangko Sentral, the Secretary of Finance and the Secretary of Budget and Management in representation of the National Government, and the Chairmen of the Committees on Banks of the Senate and the House of Representatives shall determine the assets and liabilities of the Central Bank which may be transferred to or assumed by the Bangko Sentral. The Committee shall complete its work within ninety (90) days from the constitution of the Monetary Board submitting a comprehensive report with all its findings and justification.

CHAPTER VII - TRANSITORY PROVISIONS

CHAPTER VI - PRIVILEGES AND PROHIBITIONS

SECTION 130. Phase-out of Regulatory Powers Over the Operations of Finance Corporations and Other Institutions Performing Similar Functions. — The Bangko Sentral shall, within a period of five (5) years from the effectivity of this Act, phase out its regulatory powers over finance companies without quasi-banking functions and other institutions performing similar functions as provided in existing laws, the same to be assumed by the Securities and Exchange Commission.

ARTICLE I - PRIVILEGES

SECTION 126. Exemption from Customs Duties. — The provision of any general or special law to the contrary notwithstanding, the importation and exportation by the Bangko Sentral of notes and coins, and of gold and other metals to be used for purposes authorized under this Act, and the importation of all equipment needed for bank note production, minting of coins, metal refining and other security printing operations shall be fully exempt from all customs duties and consular fees and from all other taxes, assessments and charges related to such importation or exportation.

Chapter VI - Privileges and Prohibitions

ARTICLE I - PRIVILEGES

SECTION 125. Tax Exemptions. — The Bangko Sentral shall be exempt for a period of five (5) years from the approval of this Act from all national, provincial, municipal and city taxes, fees, charges and assessments.

The New Central Bank Act (RA 7653)

CHAPTER VII - TRANSITORY PROVISIONS

Chapter II - The Bangko Sentral and the Means of Payment

Chapter I - Establishment And Organizations of the Bangko Sentral ng Pilipinas

CHAPTER VII - TRANSITORY PROVISIONS

CHAPTER VI - PRIVILEGES AND PROHIBITIONS

Article I. The Unit of Monetary Value

Article II. Issue of Means of Payment

Chapter V - Functions as Banker and Financial Advisor of the Government

Chapter III - Guiding Principles of Monetary Administration by the Bangko Sentral

Article I. Functions as Banker of the Government

Article II. The Marketing and Stabilization of Securities for the Account of the Government

Article III. Functions as Financial Advisor of the Government

Article I. Creation, Responsibilities and Corporate Powers of the Bangko Sentral

Article II. The Monetary Board

Article III. The Governor and Deputy Governors of the Bangko Sentral

Article IV. Operations of the Bangko Sentral

Article V. Reports and Publications

Article VI. Profits, Losses and Special Accounts

Article VII. The Auditor

ARTICLE II - PROHIBITIONS

SECTION 128. Prohibitions. — The Bangko Sentral shall not acquire shares of any kind or accept them as collateral, and shall not participate in the ownership or management of any enterprise, either directly or indirectly.

The Bangko Sentral shall not engage in development banking or financing: Provided, however, That outstanding loans obtained or extended for development financing shall not be affected by the prohibition of this section.

Article I. Domestic Monetary Stabilization

Article II. International Monetary Stabilization

Chapter IV - Instruments of Bangko Sentral Action

Article I. General Criterion

Article II. Operations in Gold and Foreign Exchange

Article III. Regulations of Foreign Exchange Operations of the Bank

Article IV. Loans to Banking and Other Financial Institutions

Article V. Open Market Operations for the Account of the Bangko Sentral

Article VI. Composition of Bangko Sentral's Portfolio

Article VII. Bank Reserves

Article VIII. Selective Regulation of Bank Operations

Article IX. Coordination of Credit Policies by Government Institutions

Chapter VI - Privileges and Prohibitions

CHAPTER VI - PRIVILEGES AND PROHIBITIONS

SECTION 133. Mandate to Organize. — The Bangko Sentral shall be organized by the Monetary Board without being subject to the provisions of Republic Act No. 7430, by adopting if it so desires, an entirely new staffing pattern on organizational structure to suit the operations of the Bangko Sentral under this Act. No preferential or priority right shall be given to or enjoyed by any personnel for appointment to any position in the new staffing pattern, nor shall any personnel be considered as having prior or vested rights with respect to retention in the Bangko Sentral or in any position which may be created in the new staffing pattern, even if he should be the incumbent of a similar position prior to organization. The formulation of the program of organization shall be completed within six (6) months after the effectivity of this Act, and shall be fully implemented within a period of six (6) months thereafter. Personnel who may not be retained are deemed separated from the service.

Article I. Privileges

Article II. Prohibitions

CHAPTER VI - PRIVILEGES AND PROHIBITIONS

ARTICLE I - PRIVILEGES

SECTION 125. Tax Exemptions.

The exemption authorized in the preceding paragraph of this section shall apply to all property of the Bangko Sentral, to the resources, receipts, expenditures, profits and income of the Bangko Sentral, as well as to all contracts, deeds, documents and transactions related to the conduct of the business of the Bangko Sentral: Provided, however, That said exemptions shall apply only to such taxes, fees, charges and assessments for which the Bangko Sentral itself would otherwise be liable, and shall not apply to taxes, fees, charges, or assessments payable by persons or other entities doing business with the Bangko Sentral: Provided, further, That foreign loans and other obligations of the Bangko Sentral shall be exempt, both as to principal and interest, from any and all taxes if the payment of such taxes has been assumed by the Bangko Sentral.

CHAPTER VII - TRANSITORY PROVISIONS

ARTICLE I - PRIVILEGES

SECTION 127. Applicability of the Civil Service Law. — Appointments in the Bangko Sentral, except as to those which are policy-determining, primarily confidential or highly technical in nature, shall be made only according to the Civil Service Law and regulations: Provided, That no qualification requirements for positions in the Bangko Sentral shall be imposed other than those set by the Monetary Board: Provided, further, That, the Monetary Board or Governor, in accordance with Sections 15(c) and 17(d) of this Act, respectively, may without need of obtaining prior approval from any other government agency, appoint personnel in the Bangko Sentral whose services are deemed necessary in order not to unduly disrupt the operations of the Bangko Sentral.

Officers and employees of the Bangko Sentral, including all members of the Monetary Board, shall not engage directly or indirectly in partisan activities or take part in any election except to vote.

SECTION 131. Implementing Details. — The Bangko Sentral shall be made operational by the performance of the following acts:

(a) the President shall constitute the Monetary Board by appointing the members thereof within sixty (60) days from the effectivity of this Act; and

(b) the transfer of such assets and liabilities from the Central Bank to the Bangko Sentral as provided in Section 132 shall be completed within ninety (90) days from the constitution of the Monetary Board.

All incumbent personnel in the Central Bank as of the date of the approval of this Act shall continue to exercise their duties and functions as personnel of the Bangko Sentral subject to the provisions of Section 133: Provided, That such personnel in the Central Bank as may be necessary for the purpose of implementing Section 132 may be assigned by the Bangko Sentral Monetary Board to the Central Bank.

SECTION 129. Phase-out of Fiscal Agency Functions. — Unless circumstances warrant otherwise and approved by the Congress Oversight Committee, the Bangko Sentral shall, within a period of three (3) years but in no case longer than five (5) years from the approval of this Act, phase out all fiscal agency functions provided for in Sections 117, 118, 119, and 120 as well as in other pertinent provisions of this Act and transfer the same to the Department of Finance.

(c) the assets and liabilities to be transferred shall be limited to an amount that will enable the Bangko Sentral to perform its responsibilities adequately and operate on a viable basis: Provided, That the assets shall exceed the liabilities as certified by the Commission on Audit (COA), by an initial amount of Ten billion pesos (P10,000,000,000);

Approved,

(Sgd.) EDGARDO J. ANGARA (Sgd.) JOSE DE VENECIA, JR.

President of the Senate Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 7037 and Senate Bill No. 1235 was finally passed by the House of Representatives and the Senate on June 10, 1993.

(Sgd.) EDGARDO E. TUMANGAN (Sgd.) JOSE DE VENECIA, JR.

Secretary of the Senate Secretary General

of the House of Representatives

Approved:

(Sgd.) FIDEL V. RAMOS

President of the Philippines