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Executive Order No. 44 (2017)

Executive Order No. 44 (2017)

—pursuant to the Philippine Development Plan 2017-2022, this Administration aims to ensure a sound macroeconomic policy by strengthening the effectiveness of financial inclusion initiatives, particularly those focusing on the efficient delivery of microfinance and micro-insurance products and services for Filipinos including those who live abroad;

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Section 1

Acquisition of PPSB by LBP and Conversion of PPSB into an Overseas Filipino Bank

Section 1.

Acquisition of PPSB by LBP and Conversion of PPSB into an Overseas Filipino Bank. —Subject to the necessary approval and/or clearance of the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Philippine Deposit Insurance Corporation, and the Philippine Competition Commission, the acquisition of PPSB by LBP through transfer of shares and its subsequent conversion into an Overseas Filipino Bank (OFB) is hereby approved, in accordance with existing laws, rules and regulations.

Section 2

Transfer of Shares of PPC and the Bureau of the Treasury

Section 2.

Transfer of Shares of PPC and the Bureau of the Treasury. —The PPC and the Bureau of the Treasury are hereby directed to transfer all their respective shares in PPSB to LBP at zero value. Relative thereto, the PPSB shall cause the expeditious transfer of all assets, liabilities, records, systems, and other appurtenant items to LBP.

Section 3

Additional Capitalization for the OFB

Section 3.

Additional Capitalization for the OFB. —In order to strengthen the capital base of OFB and enable the same to attain its primary agenda of servicing the various financial and banking needs of overseas Filipinos, the LBP is hereby directed to infuse the necessary capital to OFB.

Section 4

Reorganization

Section 4.

Reorganization. —the LBP shall implement a reorganization plan for the OFB, and cause the detail or secondment of LBP employees as amy be necessary.

The affairs and business of the OFB shall be directed, and its property manage and preserved, by a Board of Directors consisting of the following nine (9) members:

a. LBP President, as Chairperson;

b. LBP-designated OFB President, as Vice Chairperson;

c. Four (4) LBP-designated Directors or Officers, as members;

d. A member representing the Department of Labor and Employment (DOLE);

e. A member representing the Overseas Workers welfare Administration (OWWA); and

f. A private sector member representing overseas Filipinos.

The members representing the DOLE, OWWA and overseas Filipinos shall be appointed by the President.

Section 5

Early Retirement Incentive Plan

Section 5.

Early Retirement Incentive Plan. —All PPSB officers and employees who voluntarily elect to be retired or may be separated from the service shall be granted the following retirement incentive, in addition to retirement or separation benefits under existing laws:

Years in Service

Rates

First 20 years

1.00 x BMP*—x No. of years

20 years and 1 day to 30 years

1.25 x BMP x No. of years

30 years and 1 day and above ⌊aшΡhi⌊

1.50 x BMP x No. of years

*—Basic Monthly Pay

Funding for the separation pay and other benefits of affected officials and personnel of PPSB shall be sourced from its corporate funds or, whenever necessary, the corporate funds of the LBP.

Section 6

Return of Project Dagdag Regular Income Via Entrepreneurship (DRIVE) Fund

Section 6. Return of Project Dagdag Regular Income Via Entrepreneurship (DRIVE) Fund. ⚖ - ℒαɯρhi৷ Prior to the actual transfer of shares, the PPSB is hereby directed to return to the National Treasury the balance amounting to P249.23 Million from the previously released P500 Million to fund the Project DRIVE Fund.

Section 7

Repeal

Section 7.

Repeal. —All other orders, issuances, or parts thereof, which are inconsistent with the provisions of this Order, are hereby repealed or modified accordingly.

Section 8

Separability

Section 8.

Separability. —If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

Section 9

Effectivity

Section 9.

Effectivity. —This Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

DONE, in the City of Manila, this 28th day of September, in the year of our Lord Two Thousand and Seventeen.

(SGD.)— RODRIGO ROA DUTERTE

By authority of the President:

(SGD.)— MENARDO I. GUEVARRA Acting Executive Secretary