Section 43Sec./Art. 43

Section 123 of the same Act is hereby amended to read as follows:

"Sec. 123. Financial Advice on Official Credit Operations. - Before undertaking any credit operation abroad, the Government, through the Secretary of Finance, shall request the opinion, in writing, of the Monetary Board on the monetary implications of the contemplated action. Such opinions must similarly be requested by all political subdivisions and instrumentalities of the Government before any credit operation abroad is undertaken by them.

"The opinion of the Monetary Board shall be based on the gold and foreign exchange resources and obligations of the nation and on the effects of the proposed operation on the balance of payments and on monetary aggregates.1wphi1

"Whenever the Government, or any of its political subdivisions or instrumentalities, contemplates borrowing within the Philippines, the prior opinion of the Monetary Board shall likewise be requested in order that the Board may render an opinion on the probable effects of the proposed operation on monetary aggregates, the price level, and the balance of payments.

"A credit operation or borrowing as provided herein may take the form of different credit facilities such as, but not limited to, a single loan, series of loans under a borrowing program, or credit lines. No prior Monetary Board opinion shall be required for individual drawdowns or borrowings within approved credit lines or borrowing programs."