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TO:	All Heads of Departments, Offices and Agencies of the Government

In view of the necessity of effecting a rational and well-coordinated government borrowing strategy and thereby ensure that such borrowings, aside from meeting valid requirements of government borrowers concerned, can be a positive instrument in further enhancing the country's credit standing and credibility abroad, in strengthening the government negotiating posture and in maintaining the integrity of the fiscal commitments of the Government and the country's international reserves, it is hereby ordered that:

1. All foreign borrowing proposals of the Government, Government Agencies and government  financial  institutions shall be submitted to the Central Bank for approval in principle by the Monetary Board as to purpose and credit terms among others, before commencement of actual negotiations.
2. Actual negotiations for such foreign credits and/or accommodations shall be conducted by the Secretary of Finance and/or Central Bank Governor or their duly authorized representatives as chief or co-chief negotiators, together with the representatives of the Government, government agencies and government financial institutions or entities concerned.

The Secretary of Finance and the Governor of the Central Bank are hereby directed to coordinate in promulgating the implementing rules and regulations as are necessary to give effect to this Letter of Instructions.

Done in the City of Manila, this 21st day of January, in the year of Lord, nineteen hundred and seventy-four.