Marcos approves ULFC-LLFC merger

President Ferdinand “Bomgbong” R. Marcos Jr. (Photo from his Facebook page)

MANILA, Philippines — President Ferdinand “Bongbong” R. Marcos Jr. has issued an executive order (EO) approving the merger of United Coconut Planters Bank Leasing and Finance Corporation  (ULFC) and the Land Bank of the Philippines Leasing and Finance Corporation (LLFC).

The LLFC and ULFC — both attached to the Department of Finance — are finance and leasing corporations extending credit to businesses for the acquisition of equipment and other assets.

“The merger of LLFC and ULFC, with LLFC as the surviving entity, is hereby approved, subject to relevant laws, rules and regulations,” EO 65, signed by Executive Secretary Lucas Besamin on August 6, stated.

Under the EO,  the merger shall transfer all assets and liabilities of United Coconut Planters Bank (UCPB) to LBP, including its ownership shares in ULFC.

It is pursuant to Section 5(a) of Republic Act (RA) No. 10149 or the “GOCC Governance Act of 2011,” which states that “the GCG en banc finds the merger of LLFC and ULFC to be in the best interest of the State, to eliminate unnecessary overlap in the mandates and functions of LLFC and ULFC.”

Meanwhile, the Governance Commission for GOCCs (GCG), LLFC and ULFC were ordered to ensure that the merger between the said two entities will comply with RA No. 11232 or the “Revised Corporation Code of the Philippines” and RA No. 10667 or the “Philippine Competition Act.”

Marcos, through the EO, also directed the absorption of qualified officers and employees from the ULFC affected by the order whenever applicable — subject to the possession of the necessary service eligibility and other requirements prescribed for the position.

“In addition to retirement or separation benefits under existing laws and regulations, the ULFC Board of Directors is hereby authorized to adopt a separation incentive package for affected officers and personnel of ULFC, using as reference the rates prescribed under EO No. 150 (s.2021), and in accordance with other applicable laws, rules and regulations,” it stated.

The EO takes effect immediately upon publication in the Official Gazette, or in a newspaper of general circulation.