An Actgranting Tax Exemptions And Fee Privileges To Special Purpose Vehicleswhich Acquire Or Invest In Non-Performing Assets, Setting The Regulatory Framework Therefor, And For Other Purposes 

• In anticipation of the increase in bad loans to an unprecedented level and to help maintain stability in the financial system, this bill seeks to provide a legal framework for the establishment of asset management companies (AMCs) such as the special purpose vehicle (SPV) for the purpose of acquiring or investing in non- performing assets (NPAs) of the banks and other financial institutions. 
• This is similar to the Special Purpose Vehicle Act of 2002 which was enacted to help cushion the impact of the 1997 Asian financial crisis to the entire Philippine financial system 
• The establishment of SPVs is beneficial both to the banks and the private sector-led AMCs. This will improve the liquidity condition of the banks and other financial institutions. On the other hand, the SPVs will be afforded an opportunity to reap profits from the subsequent disposition of valuable NPAs which are usually acquired at a discounted price. Furthermore, to encourage the private sector to establish SPVs, this bill seeks to grant certain tax exemptions and fee privileges on the sale or transfer of NPAs. 

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