PRE-TERMINATION OF CRPP CONTRACT

The Monetary Board, in its Resolution No. 1912 dated October 31,
2000, decided to amend the provision on the Pre-termination of a CRPP
Contract, under Annex 1 of Circular No. 261 dated October 12, 2000, to
read as follows:

Settlement of the CRPP contract between the Bank and the BSP prior
to the original contract maturity date shall be allowed, subject to the
following conditions:

1.         The corresponding foreign exchange (FX) obligation of
the borrower with the Bank, subject of the CRPP contract, shall be paid
in full or in an amount at least equal to the amount of the CRPP
contract;

2.         Proof of payment of the underlying FX obligation,
together with the Bank’s request for pre-termination, certified/signed
by a Senior Vice President or his equivalent and by the Compliance
Officer, shall be submitted to DCB I/II;

3.         The borrower/client shall not be allowed to avail of
the CRPP facility (or a new CRPP contract) using the same underlying
foreign exchange obligation;

4.         Pre-termination shall be allowed only after
post-verification of the documents submitted has been completed by the
BSP, or not earlier than fifteen (15) calendar days from the date of the
CRPP contract; and

5.         A new forward contract rate plus a pre-termination fee
based on current market rates shall be determined by the BSP — Treasury
on the date the CRPP contract is pre-terminated.

However, if post verification shows no actual payment of the FX
obligation was made and manner of payment was thru renewal of the loan
under a new promissory note, or by another form of FX obligation,
sanctions on the cancellation of a CRPP contract under Circular No. 261
shall apply.

Adopted: 31 Oct. 2000

(SGD.) RAFAEL B. BUENAVENTURA
Governor