RESTRICTED
WORLD TRADE S/FIN/W/12/Add.31
11November 1997
ORGANIZATION(97-4941)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THE PHILIPPINES
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofthePhilippines toMembers of
theCommittee onTrade inFinancial Services.
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ThePhilippines hereby submits itsinitial offeronspecific commitments onfinancial services.
ThePhilippinecommitmentsarecontainedinitsJuly1995Schedule(GATS/SC/70/Supp.1/Rev.1,
dated 4October 1997). Furthermore, thePhilippines iswilling tooffer thefollowing:
1. Increase foreign equity participation to51percentinbanking
Increase theallowable equity participation byforeign banks onexisting domestic banks ornew
locally incorporated banking subsidiaries from 49percentofthevoting stock committed in1995 to
51percent. Foreign equity participation inexisting banks beyond 51percentwillbemaintained at
existing levels.
2. Increase foreign equity participation to51percentininsurance
Increase theallowable equity participation byforeign insurance companies onexisting domestic
insurance companies ornewlocally incorporated insurance companies fromthe40percentofthevoting
stock committed in1995to51percent. Foreign equity participation inexisting insurance companies
beyond 51percentwillbemaintained atexisting levels.
3. Increase allowable additional branches offoreign bankbranches tosix
Increase thenumber ofallowable additional branches offoreign banks from four(4)tosix
(6)withthefirstthree (3)ofthese branches inlocations oftheirchoice andtheremaining three (3)
branches atlocations designated bytheMonetary Board.
4. Allow cross border trade inmarine hullandmarine cargo insurance
Offer cross border trade inmarine hullandmarine cargo insurance asanexception tothe
limitations onmarket access under general non-life insurance.
This offer isconditional andpursuant totheSecond Decision onFinancial Services of
21July1995, thePhilippines retains theright tomodify orwithdraw allorpartofthespecific
commitments onfinancial services.