FURTHER AMENDMENT TO THE EXISTING REGULATIONS GOVERNING THE APPLICABILITY OF DOSRI RULES AND REGULATIONS TO GOVERNMENT BORROWINGS FROM GOVERNMENT-OWNED OR -CONTROLLED BANKS/NON-…

Pursuant to Monetary Board Resolution No. 1387 dated 23 October
2008, the provisions of the Manual of Regulations for Banks (MORB) and
the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI),
on the applicability of DOSRI rules and regulations to government
borrowings from government-owned or -controlled banks/ NBFIs are hereby
amended as follows:

SECTION 1. Item “2.c” of Subsection X337.1 of the Manual of Regulations for Banks (MORB) is hereby amended to read as follows:

“2. Loans, other credit accommodations, and/or guarantees to: (a)
GOCCs; and (b) corporations where the ROP, its agencies/
departments/bureaus, and/or GOCCs own at least twenty percent (20%) of
the subscribed capital stock shall be considered indirect borrowings of
the ROP and shall form part of the individual ceiling as well as the
aggregate ceiling: Provided, That the following loans, other credit
accommodations, and/or guarantees to GOCCs and corporations where the ROP, its agencies/departments/ bureaus, and/ or GOCCs own at least twenty
percent (20%) of the subscribed capital stock shall be excluded from
the thirty percent (30%) ceiling on unsecured loans under Sections X330
and X331:

x x x

c. Loans, other credit accommodations, and/or guarantees GRANTED
FOR THE PURPOSE OF PROVIDING (i) WHOLESALE AND RE TAIL LOANS TO the
agricultural sector and micro, small and medium enterprises (MSMEs);
AND/OR (ii) rediscounting and guarantee FACILITIES for loans granted to
the SAID SEC TOR OR ENTERPRISES;”

SECTION 2. The foregoing amendment shall likewise apply
to borrowings of GOCCs and corporations where the ROP, its
agencies/departments/bureaus, and/or GOCCs own at least twenty percent
(20%) of the subscribed capital stock from government-owned or
-controlled NBFIs and accordingly amends the corresponding provisions of
the Q- and N-Regulations of the MORNBFI.

SECTION 3. This Circular shall take effect fifteen
(15) days following its publication in the Official Gazette or in a
newspaper of general circulation.

Adopted: 10 Nov. 2008

FOR THE MONETARY BOARD:

(SGD.) ARMANDO L. SURATOS
Officer-In-Charge