The government is preparing the executive order (EO) to raise and spend P50 billion as stimulus financing this year.

Cabinet-member and one of President Arroyo’s closest economic advisers, Trade secretary and Monetary Board member, Peter Favila, said the plan to tap National Development Co. (NDC) to issue P50 billion in notes will need an EO.

Favila said Friday that he has already met with Finance Secretary Margarito B. Teves last week for the details of the stimulus financing and the EO. “Basically, the EO has to be issued first,” he said.

The Department of Finance has to endorse the proposed EO to Malacañang.

The plan is that NDC will issue P50 billion to partly finance the government’s P330-billion economic stimulus program. The additional expenditures will help government avert a recession this year.

The Development Bank of the Philippines, Land Bank of the Philippines, Social Security System, and Government Service Insurance System will purchase the notes or P12.5 billion each.

Favila said the guidelines for the stimulus financing will be issued after the EO.

In the meantime the GFIs said that they are ready to release the funds as soon as the guidelines for the financing are finalized.

Teves said earlier that DBP, Land Bank, SSS, and GSIS have been assured sovereign guarantees by PhilEXIM.

For one, the 2009 national budget of P1.42 trillion was only approved in March. The intricacies of the stimulus funding also needs fine tuning for it to work and used for “quality” financing.