WHEREAS, the People’s Credit and Finance Corporation [PCFC], which is a government-owned and controlled corporation registered with the Securities and Exchange Commission and created in accordance with Administrative Order No. 148 (s. 1994) and Memorandum Order No. 261 (s. 1995), has been identified under Republic Act No. 8425 (s. 1997), otherwise known as the "Social Reform and Poverty Alleviation Act," as the vehicle for the delivery of microfinance service for the exclusive use of the poor and as the lead government entity especially tasked to mobilize financial resources from both local and international funding sources for microfinance services for the exclusive use for the poor;

WHEREAS, one of the programs to reduce poverty and bring about progress in the country identified by the President of the Republic of the Philippines in her 10 Point Agenda to be pursued and implemented by her administration in the next six (6) years is the generation of 6 to 10 million jobs by tripling loans to micro, small and medium enterprises, and the development of 1 to 2 million hectares of agri-business lands;

WHEREAS, since the objectives and programs of the NLSF and PCFC are similar, there is a need to rationalize and consolidate them into one entity in order to achieve efficiency in the delivery of microfinance services to micro, small and medium enterprises, in accordance with the President’s 10-Point Agenda;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the power vested in me by law, do hereby order:

SECTION 1. Consolidation and Merger. – The National Livelihood Support Fund [NLSF] is hereby consolidated and merged with the People’s Credit and Finance Corporation [PCFC]. The Land Bank of the Philippines which exercises supervision over the NLSF is hereby directed to transfer the management of all funds, properties, equipment and records of the NLSF, as the Trust fund, to the PCFC.

SECTION 2. NLSF Secretariat. – Upon consolidation and merger of the NLSF with the PCFC, PCFC Governing Board shall exercise supervision and control over the NLSF Secretariat, which was reorganized and realigned into a livelihood and enterprise development, generation and promotion agency of the government under Executive Order No. 75 (s.1999). The Executive Director of the NLSF Secretariat shall be an ex officio member of the PCFC Governing Board.

SECTION 3. Implementation Guidelines. – Within forty five (45) days from the issuance of this Executive Order, the President of the Land Bank of the Philippines and the Executive Director of the NLSF Secretariat are hereby directed to jointly formulate the appropriate guidelines, rules and regulations to implement the provisions hereof, subject to approval of the President of the Philippines.

SECTION 4. Repealing Clause. – The provisions of Executive Order No. 75 (s. 1999) which are inconsistent with the provisions of this Executive Order are hereby repealed, amended or modified accordingly. All executive issuances, rules, regulations or parts thereof, which are inconsistent with any of the provisions hereof are hereby repealed, amended or modified accordingly.

SECTION 9. Effectivity. – This Executive Order shall take effect immediately.

City of Manila, September 22 2004

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President: