Are high-ranking government officials allowed to obtain business loans from government-owned banks during their tenure?
No, high-ranking officials such as the President, Vice-President, Members of the Cabinet, Congress, and Supreme Court are strictly prohibited from obtaining such loans. During their tenure, no loan, guaranty, or financial accommodation for business purposes may be granted to them by government financial institutions. This prohibition extends directly or indirectly to them and any firm in which they have a controlling interest. This strict anti-conflict-of-interest rule is detailed in Article XI, Section 16, 1987 Philippine Constitution. “SECTION 16. No loan, guaranty, or other form of financial accommodation for any business purpose may be granted, directly or indirectly, by any government-owned or controlled bank or financial institution to the President, the Vice-President, the Members of the Cabinet, the Congress, the Supreme Court, and the Constitutional Commissions, the Ombudsman, or to any firm or entity in which they have controlling interest, during their tenure.” 06-Mar-26About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
