Credit Policy Implementation

For the year 2000, the National Credit Council (NCC) continued to be in the forefront of providing the basic and key policies to guide the implementation of credit programs of the government.

After Executive Order 138 (which directs government entities involved in the implementation of credit programs to adopt the credit policy guidelines formulated by the NCC) was signed on 10 August 1999, regional consultation workshops were conducted which led to the approval of its operating guidelines on March 29, 2000. This paved the way for the government to finally implement the policy guidelines formulated by the NCC. Among others, the guidelines spell-out the rationalization program for directed credit programs (DCPs), the mechanics for the phase-out of credit programs for line agencies and the implementation of DCPs by the Government Financial Institutions (GFIs).

Following approval of the operating guidelines, the NCC identified the activities that need to be implemented to ensure the effective implementation of EO 138:

Groundwork on the Conduct of Audit and Transfer of DCPs

The NCC Secretariat organized a workshop with the concerned auditors of the Commission on Audit (COA). The Bureau of Treasury (BTr) and the Department of Budget and Management (DBM) were also being consulted in the formulation of a joint DOF-DBM-BTr-COA circular which will specify the mechanics for the conduct of audit of each of the DCPs and the transfer of DCPs from the Government Non-Financial Agencies (GNFAs) to the GFIs.

One-on-one meetings with the concerned GNFAs were conducted to discuss the individual phase-out plans in accordance with the provision of EO 138.

Advocacy and Information Dissemination

Donor agencies were consulted to discuss the impact of EO 138 on their on-going and proposed program assistance in the Philippines.

Series of symposia were arranged in Luzon, Visayas and Mindanao. A planning workshop of the NCC Secretariat with the technical staff of LandBank (being the co-chair of NCC) was also held to discuss the work program and various activities that need to be conducted in relation to the effective implementation of EO 138.

Technical Assistance for Credit Cooperatives

Upon the request of big cooperatives, the NCC initiated and spearheaded the establishment of the Standard Chart of Accounts and Manual for Credit Cooperatives. The NCC approved the final version in September 2000 after a series of regional training workshops.

Review of Credit Related Projects

Since the Technical Board of the Investment Coordinating Committee (ICC) required an NCC endorsement of proposed foreign loans and project proposals with credit component, three (3) of such projects were reviewed and endorsed to the ICC for consideration and approval.