AMENDMENTS TO CIRCULAR NO. 769 DATED 26 SEPTEMBER 2012 (GUIDELINES ON REQUESTS FOR MONETARY BOARD OPINION ON THE MONETARY AND BALANCE OF PAYMENTS IMPLICATIONS OF PROPOSED DOMEST…

The
Monetary Board, in its Resolution No. 1796 dated 31 October 2013,
approved the amendments to Circular No. 769 dated 26 September 2012, as
follows:

Section 1. Item 1 of Section II is hereby amended to read as follows:

“1. The LGUs shall submit a written request to the BSP for
Monetary Board (MB) opinion on the monetary and balance of payments
(BOP) implications of its proposed borrowing prior to the loan release.
The request shall include the required supporting documents/information
listed in Annex 1.”

Section 2. Item 3 of Section II is hereby amended to read as follows:

“3. Once the LGU has submitted the required
documents/information, the matter shall be elevated to the Monetary
Board for an opinion on the probable monetary and BOP implications of
the proposed LGU loans.”

Section 3. Item 4.c of Section II is hereby amended to read as follows:

“4. The MB opinion shall contain the following conditions: .

1. x x x.
2. x x x.
3. The MB opinion is valid only for six (6) months from the date
   of issue. The validity period refers to the time within which the
   proposed loan is to be released in part or in full. It commences on the
   date of the MB resolution pertaining to the proposed loan.”

Section 4. Section III is hereby amended to include a new provision and shall read as follows:

“III. Post Borrowing Reports/Post-Loan Release Reports

The borrowing LGU shall submit to the BSP, through a letter addressed
to the Director, Department of Economic Research or through electronic
mail addressed to mbopinion_der@bsp.gov.ph, a post-borrowing
report that will indicate the actual amount of the domestic borrowing as
well as the final terms and conditions thereof within 30 calendar days
from the date of the full release of loan proceeds.

The lending
banks shall submit to the BSP, through a letter addressed to the
Director, Department of Economic Research or through electronic mail
addressed to mbopinion_der@bsp.gov.ph, a semestral post-loan
release report on LGU loans granted in full within the last six months
that will indicate the actual amount of loan released as well as the
final terms and conditions thereof, within 30 calendar days after the
end of each semester.”

Section 5. Item A of Annex 1 is hereby amended as follows:

“A. To support the request for MB opinion (to be submitted by the LGU to BSP)

1. Letter by the LGU requesting for the MB opinion on the proposed
   loan, and providing information on the terms and conditions of the
   proposed loan (i.e., loan amount, purpose of loan [whether for
   infrastructure or importation of equipment, etc.], interest rate,
   maturity, fees and other charges).”
2. x x x.
3. x x x.
4. x x x.
5. Indication of the LGU in its letter of request whether the proceeds of the proposed borrowing will be used for importation.
6. Certification from the LGU indicating that no disbursement, in
   full or partial amounts, has been made of the loan for which it is
   requesting an MB opinion for (sample copy attached as annex 1a).”

Section 6. Item D of Annex 1 is hereby amended as follows:

“D. Post Borrowing Reports/Post-Loan Release Reports

The
borrowing LGU shall submit to the BSP, through a letter addressed to
the Director, Department of Economic Research or through electronic mail
addressed to mbopinion_der@bsp.gov.ph, a post-borrowing report
that will indicate the actual amount of the domestic borrowing as well
as the final terms and conditions thereof within 30 calendar days from
the date of the full release of loan proceeds (sample copy attached as
Annex 4 and 4a).

The lending banks shall submit to the BSP,
through a letter addressed to the Director, Department of Economic
Research or through electronic mail addressed to mbopinion_der@bsp.gov.ph,
a semestral post-loan release report on LGU loans granted in full
within the last six months that will indicate the actual amount of loan
released as well as the final terms and conditions thereof, within 30
calendar days after the end of each semester (sample copy attached as
Annex 5).”

Section 7. The Annexes of Circular
No. 769 is amended to include Annex 1a (template on the certification
from the LGU that no disbursement has been made of the loan for which it
is requesting an MB opinion for), Annex 4a (template on the “Post-Bond
Flotation Report”), and Annex 5 (template on the “Post-Loan Release
Report”).

This Circular shall take effect fifteen (15) days following
its publication either in the Official Gazette or in a newspaper of
general circulation.

FOR THE MONETARY BOARD:

(SGD) VICENTE S. AQUINO
Officer-in-Charge