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TO:	All Concerned

REQUIRING THAT ALL LETTERS OF CREDIT TO BE ISSUED BY FOREIGN-BASED CONTRACTORS IN FAVOR OF CONTRACTING AGENCIES AND INSTRUMENTALITIES OF THE GOVERNMENT, LOCAL GOVERNMENTS AND GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS, BE OPENED WITH A DOMESTIC BANK

In order to ensure that the  interest of the government is amply protected in contracts  entered into by its agencies and instrumentalities and by local  governments and government-owned or controlled corporations, where such contracts provide for the  issuance of a letter of credit to guarantee the advance payment made by said government agencies, instrumentalities, corporations  and local corporations to foreign-based contractors, it is hereby required that all such letters of credit to be issued by the said foreign--based contractors in favor of the contracting government agency/instrucmentality/corporation or local government, be opened with a domestic bank,  preferably the Philippine National Bank.

All heads  of ministries,  bureaus, offices,  agencies and instrumentalities  of the  government,  local governments and government-owned or  controlled corporations are hereby enjoined to strictly enforce the above requirement on all pertinent contracts entered into by their respective offices.

Done in the City of Manila,  this 28th day of November, in the year of Our Lord, nineteen hundred and seventy-nine.