BSP CIRCULAR NO. 234, April 03, 2000
PAG-IBIG AS ALTERNATIVE COMPLIANCE WITH THE AGRARIAN REFORM CREDIT REQUIREMENTS OF P.D. NO. 717 IN LINE WITH SECTIONS 4 OF SAID P.D.
1999 and March 24, 2000, respectively, decided to consider the proposed
P4 billion Pag-IBIG Bonds with principal maturity date of five (5)
years and one (1) day after issue date (due 2005) to be issued by the
Home Development Mutual Fund (HDMF/Pag-IBIG) as alternative compliance
with the agrarian reform credit requirement of P.D. No. 717 in line with
Section 4 of said P.D. which allows banking institutions to invest, in
such government securities as may be declared eligible by the Bangko
Sentral, any portion of the amount set aside for agrarian reform credit
not actually loaned out.
Accordingly, investments made by banks in Pag-IBIG’s proposed P4
billion bond issue (2000 series) shall be allowed as alternative
compliance with the ten percent (10%) agrarian reform credit
requirement, subject to the following conditions:
i. Such bonds shall not be hypothecated in any way or earmarked for any other purposes; and
ii. In case the bonds are the subject of a repurchase/resale
agreement, only the buying/lending bank may use such Bonds as
compliance with the agrarian reform credit requirement during the
holding period; Provided, That the repurchase/resale agreement shall be
for a term of at least thirty (30) days without pretermination during
the first thirty (30) days.
This Circular shall take effect upon the availability of the Pag-IBIG Bonds in the market.
Adopted: 3 April 2000
(SGD.) RAFAEL B. BUENAVENTURA
Governor