Section 6August 22, 1991, Sec./Art. 6

Debt Purchase Guidelines. – In buying Philippine foreign debt papers pursuant to the debt-for-note scheme, the OWI Fund Board shall observe the following guidelines and standards:

(1) Priority shall be given to Philippine foreign debt papers where the loan proceeds were actually utilized in projects, programs and balance of payments financing which benefited the Filipino people;

(2) Loans categorized by law or pronounced by the President pursuant to the recommendation of the Joint Legislative-Executive Foreign Debt Council as immoral, odious, and/or illegal shall not be subject to the debt-for-note scheme;

(3) Foreign indebtedness which are subject to any pending litigation or repudiation shall not be subject to any debt conversion or reduction arrangements;

(4) Only debt papers having a minimum discount rate of thirty-five percent (35%) shall be considered for debt-for-note this Act; and

(5) Only remittances coursed through the nonfinancial entities and money couriers shall be utilized for debt conversion. Such remittances coursed through the financial institutions shall be used as loan and investment funds that will give priority to the needs and concerns of overseas workers and their families. Said loan and investment funds may also be utilized to finance the needs of small business enterprises: provided, that the workers' funds are one hundred percent (100%) guaranteed by the Government.