Sec.
20. The President may contract or guarantee foreign loans on behalf of
the Republic of the Philippines with the prior concurrence of the Monetary
Board, and subject to such limitations as may be provided by law. The Monetary
Board shall, within 30 days from the end of every quarter of the calendar year,
submit to the Congress a complete report of its decision on applications for
loans to be contracted or guaranteed by the Government or government-owned and
controlled corporations which would have the effect of increasing the foreign
debt, and containing other matters as may be provided by law. (Art. VII, 1987 Constitution)
Limitations:
1.
There must be prior concurrence of the Monetary Board
2. It
is subject to such other limitations
The
President of the Philippines authorized the Secretary of Public Works
and Highways to negotiate and sign a loan agreement with the German
Government forthe construction of a dam. The Senate, by a resolution,
asked that the agreement be submitted to it for ratification. The
Secretary of Foreign Affairs advised the Secretary of Public Works
and Highways not to comply with the request of the Senate. Is the
President bound to submit the agreement to the Senate for
ratification? (Bar Question 1994, No. 13)
No, the
President is not bound to submit the agreement to the Senate for
ratification. Under Section 20, Article VII of the Constitution,
only the prior concurrence of the Monetary Board is required for the
President to contract foreign loans on behalf of the Republic of
the Philippines.
What
are the restrictions prescribed by the Constitution on the power of the
President to contract or guarantee foreign loans on behalf of the
Republic of the Philippines? Explain. (Bar Question 1999, No.
1)
Under
Section 20, Article VII of the Constitution, the power of the President to
contract or guarantee loans on behalf of the Republic of the
Philippines is subject to the prior concurrence of the Monetary Board and
subject to such limitations as may be prescribed by law.
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