Section 17Sec./Art. 17

Contracting Loans, Credits or Indebtedness Including Supplier's Credit, Deferred Payment Arrangements for SRDP Program Projects. - The President and Commander-in-Chief in behalf of the Republic of the Philippines is hereby authorized to contract such loans, credits or indebtedness including supplier's credit, deferred payment arrangements for SRDP Program Projects upon such terms and conditions as maybe agreed upon with any local or foreign source or lender and at terms of payment of not less than ten (10) years and to enter into and conclude bilateral agreements involving other forms of official assistance such as grants and commodity credit arrangement or indebtedness as may be necessary with Government of foreign countries with whom the Philippines has diplomatic or trade relations or which are members of the United Nations, their agencies, instrumentalities or financial institutions or with reputable international organizations or non-governmental national or international lending institutions or firms extending supplier's credit or deferred payment arrangements: Provided, That such loan, credit or indebtedness shall be incurred only after the plans for such project have been prepared by the DND and approved by the President. and only when the Secretary of Budget and Management has certified that for the fiscal year in question, funds are appropriated and programmed to service the external debt of the public sector, including the loan, credit ot indebtedness proposed to be contracted, and that the counterpart peso funding requirements of the projects for which such loans, credits or indebtedness are being contracted have been programmed and shall be available as and when needed for the completion of the project.