Beruoxo SerurneL Ne ptLtptNAs

OFFICE OF THE GOVERNOR

Circular No.926
Series of 2016

Subject: Guidelines in Processing Requests for Monetary Board opinion on

the
Monetary and Balance of payments rmplications of proposed Domestic
Borrowings by Government Entities pursuant to section 123 of Republic
Act No.7553

The Monetary Board, in its Resolution No. 1125 dated 22 June

2lt6,approved the
amendments in Section X398 of the Manual of Regulations for Banks, as follows:

section 1. subsection X398.1 shail be amended to read as follows:

'x398.1 Domestic borrowings by local government units (tGUs) pursuant to

section 123 ol R.A. No. 7653. The domestic borrowings of LGUs within the
Philippines, the procedures to be observed as well as the documentary
requirements to be submitted, relative to the requests for Monetary
Board (MB)
opinion on the probable effects of the proposed credit operation on monetary
aggregates, the price level and the balance of payments (BOp), pursuant
to
Section L23 of Republic Act No. 7653, as well as other pertinent laws and
regulations shall be governed by the guidelines as contained in Appendix
57.

Section 2. Subsection X398.3 is hereby added as follows:

'x398.3 Domestic borrowings by Government-owned and/or {ontrolled

Corporations (GocCs), Local water Districts (twDs) and State Universities
and
colleges (sucsl pursuant to section L23 of R.A. No. 7653. The domestic
borrowings of GoCCs, LWDs, and SUCs within the Philippines, the procedures
to
be observed as well as the documentary requirements to be submitted,
relative
to the requests for Monetary Board (MB) opinion on the probable effects
of the
proposed credit operation on monetary aggregates, the price
level and the
balance of payments (BoP), pursuant to section L23 of Republic
Act No. 7653, as
well as other pertinent laws and regulations shall be governed by the guidelines
as contained in Appendix 57A.

Page 1 of 2
section 3. subsection X398.5 is entirely amended to read as follows:

'x398.5 Enforcement actions. Any violation of Section X398 shall be subject to

appropriate enforcement/supervisory action/s provided under Section X009
of
the Manual of Regulations for Banks and Sections 36 and 37 of Republic Act No.
7653, as well as those contained in other applicable regulations of the
BSp.
lmposition of applicable enforcement action shall be on a per loan/borrowing
account, regardless of the number of tranches or releases from the same
loan/borrowing."

Section 4. Effectivity. This Circular shalltake effect fifteen (15) calendar days following
its
publication either in the Official Gazette or in a newspaper of general
circulation.

FORTHE MONETARY BOARD:

/-qF-
AMAND9 M. TETANGCO,
/ Governor
JR.

l7 September 2016

Page 2 of 2
 Appendix 57

Appendix 57. Guidelines on Requests for Monetary Board opinion

on the Monetary
and Balance of Payments lmplications of Proposed Domestic Borrowings
by Local
Government Units (tGUs) pursuant to section L23 of R.A. No. 7653

Pursuant to Monetary Board Resolution No. 1125 dated 22 June

20L6, the following
guidelines shall govern the domestic borrowings of local government
units (LGUs) in line
with Republic Act No. 7653 (The New Central Bank Act), as well as other pertinent
laws/regulations.

l. Coverage

This shall govern domestic borrowings of LGUs within the philippines,

the procedures to
be observed and the documentary requirements to be submitted, relative
to the
request for Monetary Board (MB) opinion on the probable effects
of the proposed
credit operation on monetary aggregates, the price level and the balance
of payments
(BOP), pursuant to Section L23 of Republic Act No. 7653.

il. Procedures

L. The LGU shall submit a written request to the Bongko Sentrol ng pitipinas
("BSp.)
for MB opinion on the monetary and BoP implications of its proposed borrowing
prior to the loan release. The request shall be accompanied
by the required
documents and information listed in section llt of this Appendix.

2. The BSP shall acknowledge receipt of the request, with an initial

evaluation of the
documents/information submitted. No request will be processed should
there be
any deficiency or inconsistency found in the documents/information
submitted.

once the LGU has submitted the complete set of required documents/information,
the matter shall be elevated to the MB for an opinion on the probable monetary
and BOP implications of the proposed loan.

4. The LGU shall be informed in writing of the MB's decision on its request
for
opinion and shall contain the following conditions:

a. The loan proceeds shall only be released by the lending institution to

the LGU
subject to the submission of a duly executed ordinance approving the
proposed borrowing, its purpose, terms and conditions, as
well as the
provincial/city/municipal validation of the ordinance, as applicable;

b. The opinion of the MB is limited to the assessment of the monetary

and Bop
implications of the proposed borrowing, pursuant to Section L23 of Republic
Act No. 7653. The said opinion is based on: (i)the information contained
in the

Page 1 of 4
 Appendix 57

documents submitted; and (ii) the assumption that the proceeds

of the
borrowing will be used for the intended purpose described in the
documents
submitted;

c. The MB opinion is varid onry for one (1) year 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. lt commences on the date of the
BSp letter
transmitting the said MB opinion on the monetary and Bop implications
of the
LGU's proposed loan;

d' The LGU shall submit to BSP a post-borrowing report on the final
terms and
conditions and on the utilization of the proceeds of the borrowing
within 30
days after the finar disbursement of the roan proceeds; and

e. The MB opinion should not in any way be construed as exempting

the
borrowing LGU from the applicable requirements and/or prohibitions
Jnoer
existing laws, rules and regulations.

5. No opinion will be issued bythe MB in case the LGU loan has already
been partially
or fully disbursed.

6. For LGU loans with amounts that exceed the borrowing capacity,
as indicated in
the certification on the borrowing and debt service capacity issued by
the Bureau
of Local Government Finance (BLGF), the MB opinion will refer only to the
amount
that is within the borrowing capacity.

7. The LGU shall request a new MB opinion should there be any increase
in the loan
amount in excess of LO%, or a change in the manner of acquisition
of the project/s
to be funded (i.e., whether for importation or local purchase) after an MB opinion
has been issued; provided that no release has been made of the
loan.

LGUs that are unable to avail of their loan during the one (1) year validity period
shall request for a new MB opinion on their proposed loan. They
shall submit to
BsP the required documents and information under item 1
of Section lll of this
Appendix. However, the LGU would only need to submit the required
documents
under items a to c of item 2 under Section lll of this Appendix to
the lending
institution if there are changes to the previously submitted documents.

ilt. REqUIRED DOCUMENTS AND INFORMATION

t. Request for MB ooinion. To support the request for MB opinion,

the LGU must
submit the following documents/information to BSp:

Page 2 of 4
 Appendix 57

Letter from the LGU requesting for MB opinion on its proposed

loan (use the
prescribed form attached as Annex 1). The letter should
contain:

i. lnformation on the loan amount, purpose with breakdown of specific

project/s to be funded and corresponding cost/s, manner
of acquisition
(i.e., whether through importation or tocal purchase),
name of lending
institution, interest rate, term/tenor, fees and other charges, lendinl
institution's source of fund for the roan, and name of designated
contaci
person responsible for coordinating with the BSp along with
contact
information;

ii' Statement certifying that no disbursement, in full or partial amounts,

has
been made on the loan; and

iii. The names and signatures of the LGU's chief executive and the lending
institution's authorized representative.

b. Valid BLGF certification on the borrowing and debt service capacity

of the LGU;
and

c. lnformation on the LGU's year-to-date outstanding loans (use the prescribed

form attached as Annex 2).

2. Release of loan proceeds. The lending institution shall require the

submission of the
MB opinion on monetary and BOP implications prior to the release of the loan
proceeds or the release of the first tranche, in case of loans with
muttiple tranches.
In addition, lending institutions may release the loan proceeds only upon receipt
from the LGU of the following documents/information:

a. ordinance approving the proposed loan terms and conditions as well as the
specific purpose and corresponding amount/s of the project/s to be funded
(sample copy attached as Annex 3);

b. other applicable requirements under Republic Act No. 71G0, such as the
provincial/city/municipal validation of the ordinance, as applicable.

c. Waiver on the confidentiality of investment and bank deposits, whether

in
peso or foreign currency, duly executed by the govern or/mayor/
barangay
chairman, as the case may be, and supported by a .,waiver resolution,, (sample
copy attached as Annex 4).

Page 3 of 4
 Appendix 57

The BSP may request for additional documents and information

from the LGU or
the lending institution, as may be deemed necessary, to support
the request for
MB opinion.

LGUs requesting for MB opinion on proposed borrowings

to be obtained from
lending institutions other than BSP-supervised financial institutions
(BSFls), shall
submit to Bsp a written request accompanied by the reluired
documents/information enumerated above.

tv. Reportorial requirements

Post-Borrowine Report (pBRl. The borrowing LGU shail

submit to BSp, through a
letter addressed to the Director, Department of Economic Research
or through
electronic mair addressed to mbopinion_der@bsp.gov.ph, post-borrowing
a report
(PBR) that will indicate the actual amount
of loan, the final terms and conditions,
and utilization of the proceeds of the borrowing within
30 calendar days after the
final release of roan proceeds (use the prescribed form
attached as Annex 5/5.1).

2. Post-Loan Release Report (PLRR). The lending institutions

shall submit to BSp,
through a letter addressed to the Director, Department
of Economic Research or
through electronic mair addressed to mbopinion_der@bsp.gov.ph,
post-loan release report on LGU loans granted a semestral
in fuil 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 carendar days after
the end of each seme*., (rr.
the prescribed form attached as Annex 6).

3.
The BSFts shatl
submit, through a letter addressed to the .pproprirt"
a"partment of the sEs,
within fifteen (15) banking days after every semester,
a duly notarized certification
on loan releases to LGUS signed by the president or
an ofiicer of equivalent rank
and the chief compliance officer. such certification
shall be considered as a
cotegory A-2 report for purposes of imposing fines
on the delayed submission of
required reports pursuant to existing regulations. (use
the prescribed form
attached as Annex 7).

Page 4 of 4
 Annex 1

(Name of Local Government Unit)

(Complete address)
(Contact number/s: telephone and facsimile)

Date:

The Governor
Bangko Sentral ng pilipinas
A. Mabini cor. P. Ocampo Streets,
Malate Manila, Philippines 1004

tGU REQUEST FOR MONETARY BOARD (MB) OPINION

Dear Governor:

Pursuant to Section L23 of Republic Act No. 7653 (The New Central Bank
Act), may we
request for the opinion of the Monetary Board (MB) on the monetary
and balance of
payments implications of our proposed loan, details of which are provided
below.

For term loons:

Details of proposed loan

b. Total loan amount (in php million

Pleose provide breakdown of specific ploiects,
including cost ond mode of ocquisition:2/

Project 1: (Proiect title/detalls)

(Cost in Php million)
(Mode of acquisitionl

Project 2: (Proiect title/details)

(Cost in Php million)
(Mode of acquisition)

d. Interest rate (in percent per annum) Please provide indicative rate ond indicote if
e. Term/tenor (in no. of

g. Lending institution's source of fund

for the loan

"Loan information should be validated wittr ttre

2/
For mode of acquisition, please indicate whether for importation or local purchase;
for acquisition
of heavy equipment, please provide list of equipment to be

Page 1 of 2
 For bond flototion:

Details of proposed bond flotation

c. Amount (in php million

e. Purpose/s Please provide breakdown oy speciJiiproiects,

cost ond mode of ocoui:

(in no. of years)

Relative to this, we would like to certify that no disbursement,

in part or in full, has been
made on the proposed loan.

Please find attached documents and information in support

of our request, as follows:

1' Latest DoF-BLGF certification on the net debt service ceiling and borrowing
capacity;
and
2' f nformation on the LGU's year-to-date
outstanding loans (use theform attached os
Annex 2, Appendix 57, of Circulor No. 926, s. 2016).

Also, please find below the name/s and details of our

designated contact person/s whom
you may coordinate with relative to this request
for MB opinion:

L. (Name); (telephone --csimile -'bile

nos.); and (emailaddress); ...

Very truly yours,

Name and signature

Governor/Mayor/Brgy. Cha i rma n

Name and signature

Lending institution,s authorized
representativel

' The signature of the lending institution's

authorized representative is required only for loan
availments.
Page 2 of 2
 Annex 2
Please attach accomplished form in the
letter of request for Monetary Board
(MB) opinion on the LGU,s proposed toan.

(Name of LGUI

tlST OF OUTSTANDTNG TOANS AS OF (dd/mm/wwl

Lending Loan Loan Date of Amount released to For loans with MB

institution amount purpose first date (in Php million), opinion rendered,
(in Php release indicate if "partial, or indicate Resolution
million) 'full" release no. and date

For loans thot have been fully releosed, please ottach

Post-Borrowing Report (use os temptate Annex
5/5.7, Appendix 57, of Circutar No. 926, s. 2016).

Certified true and correct:

Name and signature of

Governor/M ayor / Brgy. Chairman
 Annex 3

Sample LGU Ordinance fo,r

Proposed borrowinq ftoanl
Republic of the Philippines
Province of _
Municipality / Gity of

OFFICE OF THE SANGGUNIANG BAYAN / PANLUNGSOD / PANLALAWIGAN

ORDINANCE1 NO.
Series of

ORDINANCE AUTHORIZING THE PROPOSED BORROWING OF THE CITY I

MUNICIPALITY / PROVINCE OF , IN THE AMOUNT OF
(P_) TO FUND rHE

BE lT ENACTED, as it is hereby ENACTED, by the Sangguniang Bayan I

Panlungsod / Panlalawigan of in session assembled that:

SECTION 1. The Municipal / City Mayor / Provincial Governor, in representation of

the Municipality / City / Province, hereinafter referred to as the "Municipality" / "City" /
"Province", is hereby authorized to enter into Name of loan aqreemenUcredit facilitv with
name of lender in accordance with Section 297 of RepuUtic Rct t to Zt OO
ortheLoca|GovernmentCode,intheamountof-(P-)undertheterms
and conditions herein set forth and such other terms and conditions as may be agreed upon
with any person, corporation or entity for the purpose of funding priority projecUs, and
subject to the requirements under Section 123 of Republic Act No. 7653 as implemented by
the Bangko Sentral ng Pilipinas Circular No. 402. In this connection, the Municipal / City
Mayor / Provincial Governor shall have full power and authority to represent the Municipality
/ City / Province in negotiating the terms and conditions for the said borrowing and in
signing, executing and delivering such agreements, contracts, deeds, papers, and
documents as may be necessary and proper for the full and total implementation of the
authority herein granted;

SEcTloN 2. The said priority projecVs herein specified as the

is/are hereby certified to be a local infrastructure and/or other
socio-economic development projects in accordance with2 the approved local development
plan and public investment program for the period or for the current year of the
Municipality / City / Province of an-d is supported by a final feasiUif ity study
prepared by which is also hereby approved / has been approved under the
Sanggunian Bayan / Panlungsod / Panlalawigan Resolution No. _ dated

' Based on the Local Government Code (e.9. Sections 305 (a) and SS (b)).
2
Secfions 296 and 297 of the Local Goveriment Code.
 Ordinance No._, page 2 of 3

SECTION 3. Consistent with the covering

assignment, mortgage contracts, and such othei"gn*r"nts contract, deeds and
as maybe entered into by the
Municipality / city / Province in connection with ihe
borrowing, the features, terms and
conditions shalr be as foilows and are hereby
"pfrou"o,
3.1 Project Name

Borrower
Amount
Purpose/s3
Item 1 or project A_ (description, amount)
Sub-item a-(description, sub_amount)
Sub-item b-(description, sub_amount)
Sub-item c-(description, sub-amountj

Item 2 or project B- (description, amount)

Sub-item a-(description, sub_amount)
Sub-item b-(description, sub_amount)
Sub-item c-(description, sub_amountj
...

Term
Manner of payment
Interest
Principal
Interest rate
Collateral/G uarantee/Secu rity:
Front-end Fee
Commitment Fee
Guarantor
Guarantee Fee
sinking Fund (if appricabre) or other Funding Arrangements

SECTTON 4. The Municipatity / City / Province hereby appropriates

the entire
proceeds of the borrowing exclusively to finance
the and other financial
obligations relative thereto.

sEcTloN 5' Any ordinance or parts thereof, inconsistent with

this enactment is
hereby repealed or amended accordingly.

sEcTloN6' This ordinance shall take effect upon its publication and compliance
with all procedures required under Republic ncrr.rt.-7160
including the affixation of signatures orine sanjgrnian
of an oroinance for its validity,
Bayan rpr.rrrJsod / panlalawigan
members' in concurrence thereto, composing itleast
a m-ajority p,eieoi, out of the total of
members, on all the pages of this Ordinance._

t Please indicate the specific proiect/s,

proiect' if there is more
* ln particular' but lh9n one pioiect. "r! g basic/simpte breakdown into the cost/components
tncluag ognowii,{roJ it"r", if any witt be inctuded
'sectrons in
of each
not limited io, the toan.
54-56, sg-5g. This inctudes the mayor,s/governor,s/local
executive's signature on alt pages. chief
Ordinance No._, page 3 of 3

SO ORDAINED / ENACTED.

RESOLVED FURTHER, that copies of this Ordinance be furnished the Honorable

Governor/Mayor (as the case mav be), the Municipal / City / Provincial Accountant, and the
Municipal / City / Provincial Auditor, all of this Municipality / City / Province of
the and the Bangko Sentral ng Pilipinas for their information an-d
appropriate action.

ADOPTED this _ day of 201

SANGGUNIAN MEMBERS:

Hon. Hon.

Hon. Hon.

Hon. Hon.

Hon. Hon.

CERTIFIED TRUE AND CORRECT:

SB/SP Secretary
ATTESTED:

Municipal / City Vice Mayor, or

Vice Governor or Presiding Officer

APPROVED: Date Approved:_

Municipal / City Mayor / Provincial Governor

VALIDATED AS CONSISTENT WITH LAW:s

Sanggu niang Panlalawigan Secretary

Date Validated:
Provincial Governor

s
An ordinance passed by a municipality or component city has to be validafed as consisfent with taw thru a
review by the Sangguniang Panlalawigan (Sec. 56 of LGC). For such case, the ordinance should tikewise be
signed by the appropriate officers of the Sanguniang Panlalawigan on all pages, or otherwise vatidated
through a separate document. Similarly, Sec. 57 provides for the review of Barangay Ordinances by the
Sangguniang Panlungsod or Sangguniang Bayan. Other provincesissue a separate certification or reso-lution
on said provincial review, if applicable.
 Annex 4

(Name of Local Government Unit)

(Complete Address)
(Tel.Nos./FaxlEmail)

Date:

The Governor
Bangko Sentral ng pilipinas

Dear Governor:

This has reference to our request for the opinion of the Monetary
Board (MB) on the
probable effects on monetary aggregates, price level
and balance of payments of the
proposed borrowing amounting to by the province/city/Municipality
_ of

Pursuant to the provisions of sections 2 and 3 of Republic Act No.

1405 and other laws
relating to the secrecy of bank deposits, Resolution No.
(certified true copy attached) was passed by
_dated_
the erovince/city/tu*6altty of

_our|ending/trusteebankandallbanksorfinancia|
institutions with which we have transactions to disclose to the Bangko Sentral ng
Pilipinas (BSP) all information pertaining to the deposits, investments,
loans or other
transactions including the history or status of our dealings with said banks
or financial
institutions and for the BSP to make all inquiries as may be necessary
regarding the
same' The BSP is likewise authorized to disclose and share any such information
furnished or obtained from said banks or financial institutions to the Department
of
Finance in relation to the performance by said Department of its functions.

Thank you.

Very truly yours,

Name and signature

Governor/Mayor/Chairma n
 Annex 5

For submission to the BSp, through registered mail to

the Director, Department of Economic Research, Bangko
Sentral ng Pilipinas, A. Mabini St. cor. p. Ocampo St.
Malate, Manila, 1004, or by electronic mail to
mbopinion der@bso.sov.ph

POST BORROWING REPORT

Name of Borrower
Monetary Board Resolution No.
Date of Monetary Board Opinion
Amount of Proposed Loan
Lending Institution
Final Terms and Conditions
Name of Facility
Actual Amount of Loan*
Purpose
Interest Rate (Actual)
lf floating, please indicate base and spread
Avail ment/Drawdown date*
Term (ln Years)
Maturity Date
Grace Period
Interest Payment ( Frequency/Date)
Principal Payment (Freq uency/Date)
National Government Guarantee
Collateral Gua rantee/Security
Breakdown of fees and other related costs
Other relevant terms and conditions

* Please indicate if on a staggered basis

 Annex 5.1
For submission to the BSp, through registered mail to
the Director, Department of Economic Research, Bangxo
Sentral ng Pilipinas, A. Mabini St. cor. p. Ocampo St.
Malate, Manila, 1004, or by electronic mail to
mbopinion der@bsp.sov.ph

POST BOND FTOTATION REPORT

Name of lssuer
Monetary Board Resolution No.
Date of MB Opinion
Amount of Proposed Bond Flotation
Final Terms and Conditions
Bond Name /Label
Amount of Bonds Actually Sold
Purpose of Bonds
lssue Price
Coupon Rate
Date of Flotation
Term (ln Years)
Maturity Date/Grace period
Denomination
Medium of Sale
nterest Payment ( Freq uency/Date)
I

Principal Payment (Frequency/Date)

Col latera I G ua rantee/Secu rity
Trustee Bank
FiscalAgent
Underwriter
Guarantor
Financial Advisor, if any
Breakdown of fees and other charges:
Trustee Fee
Underwriting Fee
Guarantee Fee
FinancialAdvisor Fee
Other Fees
List of lnvestors/Amount purchased
Settlement Mode
 Annex 5
For submission to the BSP, through registered mail ro
the Director, Department of Economic Research, Bangko
Sentral ng Pilipinas, A. Mabini St. cor. p. Ocampo St.
Malate, Manila, 1004, or by electronic mail to
mbopinion der@bsp.sov.ph

POST.TOAN REIEASE REPORT ON TOANS

Name of BSF|/lending institution:

Period covered, for the six months ending (mm/dd/vwv)

A. Loans granted in full for the semester

should at least include information on the maturity date, interest rate, and paym-nt terms.

B. Past-due loans for the semester

(1) (2) (3) (4) (s) (5)

Total no. of local LGUs with delayed Loan Amount Loan Maturity Interest Rate Mode of
government units (LGUs) payment (Years) Payment
with payment due
 Annex 7

Deadline: 15 banking days after end

of reference semester

SWORN CERTIFICATION ON TENDINGS TO

tOCAt GOVERNMENT UNITS

(Name of BSF|)

Pursuant to the requirements under circular No.

_ dated _ , w€
hereby certifyl that for the 6-month period ending < state reportinq semester>:

I There were no loans released to local government units (LGUslbV <Name

of BSFI>

n <Nome of BSFI> had released loans to LGUs and that _

I EXCEPT for loans in the attached list, loans released to LGUs were
covered with Monetary Board opinions on the borrowings,
probable effects on monetary aggregates, the price level and
the
balance of payments, pursuant to section 123 of Republic Act
(R.A.) No. 7653, otherwise known as,,The New Central Bank
Act,,

n ALL loans released to LGUs were covered with Monetary Board

opinions on the borrowings' probable effects on monetary
aggregates, the price level and the balance of payments, pursuant
to Section 123 of R.A. No. 7653.

To the best of our knowledge, the foregoing statements are true

and correct.

President or Officer of Equivalent Rank Chief Complia nce Officer

TIN: TIN:
Com. Tax Cert. No.: Com. Tax Cert. No.:
lssued on: lssued on:
lssued at: lssued at:

SUBSCRIBED AND SWORN to before me, on this day of _, dt

exhibiting their respective community Tax certificate as indicated
above.

NOTARY PUBLIC
Doc. No. _;
Page No. _;
Book No. _;
Series of _.

t
Check appropriate box

Page 1 of 2
 Annex 7

LOANS RETEASED TO
LGUs WITHOUT THE REQUISITE MB OPINION

(Nome of BSH)

tGU Amount Date of ustifications/explanations for

J

Released Release the loan release without the

_ requisite MB Opinion

Page2 of 2
 Appendix 57A

Appendix 57A. Guidelines on Requests for Monetary Board

opinion on the Monetary
and Balance of Payments lmplications of Proposed Domestic Borrowings
Government-owned andlor -controlled corporations (Goccs|, by
Local water Districts
(twDs) and state universities and colleges (sUCs) pursuant
to section 123 of R.A. No.
76s3

Pursuant to Monetary Board Resolution No. 1125 dated

22 June 20L6, the following
guidelines shall govern the domestic borrowings
of Government-owned and/or -
controlled corporations (Goccs), Local water Districts (LWDs)
and state universities
and colleges (sUCs), in line with Republic Act No. 7653 (The
New central Bank Act), as
well as other pertinent laws/regulations.

l. Coverage

This shall govern domestic borrowingsl of Goccs,2

LWDs, and sUCs, herein collectively
referred to as "borrowing government entities,, (,,BGEs,,),
within the philippines, the
procedures to be observed and the documentary
requirements to be submitted, relative
to the request for Monetary Board (MB) opinion on the probable
effects of their
proposed credit operation on monetary aggregates,
the price level and the balance of
payments (BoP), pursuant to section r23 of Republic
Act No. 7653.

il. Procedures

1. The BGE shall submit a written request to the Bangko

sentror ng piripinos(,,BSp,,)
for
MB opinion on the monetary and BoP implications
of its proposed borrowing prior.
to the loan release. The request shall be accompanied by
the required documents
and information listed in Section lllof this Appendix.

2. The BSP shall acknowledge receipt of the request,

with an initial evaluation of the
documents/information submitted. No request will
be processed should there be
any deficiency or inconsistency found in the documents/information
submitted.
3. once the BGE has submitted the complete set of required
documents/ information,
the matter shall be elevated to the MB for an opinion on
the probable monetary
and BOP implications of the proposed loan.

The BGE shall be informed in writing of the MB's

decision on its request for opinion
and shall contain the following conditions:

t
The term 'borrowings, shall include credit lines
of
BGEs.
'Goccs shall cover agencies/institutions
classified as such by the Gocc Governance commission
(GCG).

Page 1 of5
 Appendix 57A

a. The opinion of the MB is limited to the assessment of the monetary

and Bop
implications of the proposed borrowing, pursuant to Section L23 of Republic
Act No. 7653. The said opinion is based on: (i) the information contained
in
the documents submitted; and (ii) the assumption that the proceeds of the
borrowing will be used for the intended purpose described in the documents
submitted;

The MB opinion is valid only for one (1) year 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. lt commences on the date of the BSp letter
transmitting the MB opinion on the monetary and Bop implications of the
BGE's proposed loan;

The BGE shall submit to BSp a post-borrowing report on the final terms
and
conditions and on the utilization of the proceeds of the borrowing within 30
days after the full release of the loan proceeds or final availment of the credit
facility; and

d. The MB opinion should not in any way be construed as exempting the BGE
from the applicable requirements and/or prohibitions under existing laws,
rules and regulations.

5. No opinion will be issued by the MB in case the borrowing has already been partiatty
or fully disbursed.

The BGE shall request a new MB opinion should there be any increase in the loan
amount in excess of LO%o, ora change in the mannerof acquisition of the project/s
to be funded (i.e., whether for importation or local purchase) after an MB opinion
has been issued; provided, that no release has been made of the term loan/credit
line. The BGE shall likewise request for new MB opinion for the renewal of credit
line/s.

7. BGEs that are unable to avail of their loan during the one (1) year validity period
shall request for a new MB opinion on their proposed loan. They shall submit to
the
BSP the required documents and information under item 1 of Section lll of this
Appendix.

8. BGEs need not request an MB opinion for a one-time short-term borrowing,

but if
the borrowing is a revolving credit line, the BGEs shall request said MB opinion.3

'Short-term borrowings refer to those with tenors of 90 days or less.

Page 2 of 5
 Appendix 57A

lll. Required documents and information

L' Request for MB opinion. To support the request for

MB opinion, the BGE must
submit the following documents/information to BSp:

a. For GOCCs

Letter from the Gocc requesting for MB opinion

on its proposed roan (use
the prescribed letter format attached as Annex 1A). The
retter shourd
contain information on the following: loan amounu name
institution; for credit lineffacility: type, purpose and
of lending
date of expiry; for
term loan: breakdown of specific project/s to be funded,
cost and mode of
acquisition (i.e., whether through importation or local purchase);
interest
rate; term/tenor; date of maturity; fees and other
charges; rending
institution's source of fund for the loan; and name/s
of designated contact
person/s responsibre for coordinating with the
BSp arong with contact
information. The letter should certify that no disbursement,
partial amounts, has been made on the loan.
in fuil or

il. copy of the specific provision in the Gocc's charter

or its equivarent for
Gocc's without original charters (which may pertain
to the Gocc,s Articles
of Incorporation duly registered with the securities and Exchange
commission), indicating its authority to borrow,
including the borrowing
limit, if any.

iii. Board Resolution approving the proposed loan,

its purpose, terms and
conditions (pro-forma Board Resolution attached '
corporate secretary's certificate on the corresponding
.r' ani", ze) o,.
Board Resolution
(pro-forma corporate secretary's certificate
attached as Annex 34).

iv. Department of Finance (DoF) comments on the proposed

roan.

v. Endorsement/crearance of the proposed roan by the head of the rine

department or government agency with oversight
functions over the
borrowing entity, as applicable.

vi' Information on outstanding loans (use the prescribed

form attached as
Annex 4A).

b. For LWDs

i. Letter from the LWD requesting for MB opinion

on the proposed roan (use
the prescribed retter format attached as Annex 1A). The
retter shourd
contain information on the foltowing: lo.n .,oorr,q
rending institutiory

Page 3 of 5
 Appendix 57A

purpose with breakdown of specific project/s to be funded, cost, and

manner of acquisition (i.e., whether through importation or local
purchase); interest rate; term/tenor; fees and other charges; lending
institution's source of fund for the loan; name/s of designated contact
person/s responsible for coordinating with the BSp along with contact
information. The letter should certify that no disbursement, in full or
partial amounts, has been made on the loan.

ii. Board Resolution approving the proposed loan, its purpose and terms and
conditions (pro-forma Board Resolution attached as Annex 2A) or
corporate secretary's certificate on the corresponding Board Resolution
(pro-forma corporate secretary's certificate attached as Annex 34).

ilt. Endorsement/clearance of the proposed loan from the Local Water Utilities
Administration (LWUA).

tv. lnformation on outstanding loans (use the prescribed form attached as

Annex 4A).

c. For SUCs
Letter from the sUC requesting for MB opinion on the proposed loan (use
the prescribed letter format attached as Annex 1A). The letter should
contain information on the following: loan amount; lending institution;
purpose with breakdown of specific project/s to be funded, cost, and
manner of acquisition (i.e., whether through importation or local
purchase); interest rate; term/tenor; fees and other charges; lending
institution's source of fund for the loan; name/s of designated contact
person/s responsible for coordinating with the BSp along with contact
information. The letter should certify that no disbursement, in full or
partial amounts, has been made on the loan.

Board Resolution approving the proposed loan, its purpose and terms and
conditions (pro-forma Board Resolution attached as Annex 24) or
corporate secretary's certificate on the corresponding Board Resolution
(pro-forma corporate secretary's certificate attached as Annex 3A).

il1. Endorsement/clearance of the proposed borrowing from the commission

on Higher Education (CHEd).

tv. lnformation on outstanding loans (use the prescribed form attached as

Annex 4A).

Page 4 of 5
 Appendix 57A

The BSP may request for additional documents and information

from the BGE or the
lending institution, as may be deemed necessary,
to support the request for MB
opinion.

BGEs requesting for MB opinion on proposed

borrowings to be obtained from
lending institutions other than BSP-supervised financial
institutions
submit to BSp a written request accompanied by (BSFls), shall
documents/information
the required
enumerated above.

2' Release of loan proceeds. The lending institution

shall require the submission of the
MB opinion on monetary and BoP implications prior
to the release of the loan
proceeds or the release of the first tranche,
in case of loans with multiple tranches.

lV. Repoftorialrequirements

1' Post-Borrowine Report (PBR). The BGE shall submit

to BSp, through registered mail
addressed to the Director, Department of Economic
Research or through electronic
mail addressed to mbopinion_der@bsp.gov.ph, a post_borrowing
r."port that will
indicate, among others, the actual amount of the loan
availed as well as the final
terms and conditions thereof within 30 calendar days from
the date of the futi
release of the loan proceeds or final availment
of the credit facilitf (use the
prescribed form attached as Annex 5A).

2' Post-Loan Release Reoort (PLRR). The lending institutions

shall submit to 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 Gocc/LwD/suc loans grrnied
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 (use the prescribed form attached as Annex
64).

3.
The BSFts
shall submit, through a letter addressed to the
.ppropri.te department of the sEg
within fifteen (15) banking days after every semester,
a duly notarized certification
on loan releases to BGEs signed by the president or
an officer of equivalent rank and
the chief compliance officer. such certification shall
be considered as a category A-2
report for purposes of imposing fines on the delayed
submission of required reports
pursuant to existing regulations. (use
the prescribed form attached as Annex 7A).

Page 5 of 5
 Annex 1A

(Name of GOCC/LWD/SUC)
(Complete address)
(Contact number/s: telephone and facsimile)

Date:

The Governor
Bangko Sentral ng Pilipinas
A. Mabini cor. P. Ocampo Streets,
Malate Manila, Philippines 1004

GOCC/rWD/SUC
REQUEST FOR MONETARY BOARD (MBl OptNtON

Dear Governor:

Pursuant to Section I23 ol Republic Act No. 7653 (The New Central Bank Act), may we
request for the opinion of the Monetary Board (MB) on the monetary and balance of
payments implications of our proposed loan, details of which are provided below.

For line/s of credit:

Details of propos-d toant

a. Name of lending institution
b. Totalloan amount (in Php million)
c. Type of credit line/s Pleose provide details:

Facility 1: (Tvpe of credit facilitv)

(Amount in php million)
(Purpose)

Facility 1: (Tvpe of credit facilitv)

(Amount in php million)
(Purpose)

d. lnterest rate (in percent per annum) Please indicote if fixed or flootino
e. Term/tenor (in no. of years)
f. Availability and expiry dates
g. Repayment terms and conditions
h. Lending institution's source of fund for the toan
" lnformation for items (d)to (g)should be validated wi0 the tendi"tfitinttit,,ti,rt
 For term loon/s:

Details of proposed loan

b. Total loan amount (in php m

Pleose provide breokdown of specific
projects, ingl.uding cost and mode ol
acquisition:21

Project 1: (Proiect title/details)

(Cost in php million)
{Mode of acquisition)

Project 2: (Proiect title/details)

(Cost in php million)
(Mode of acquisitionl

e. Term/tenor (in no. of years)

institution's source of tunO toittrilan

" Information for items (Oi
'/ For mode of acquisition, please indicate whether for importation -or local purchase;
of heavy equipment, please provide list of eouiompnt for acquisition

For bond flotation:

e. Purpose/s Pteose provide oreo*a@

f. Interest rate (in

k. Borrowing capacity (in pno mittion

Page 2 of4
Relative to this, we would like to certify that no disbursement, in part or
in full, has been
made on the proposed loan.

Please find attached documents and information in support of our request,

as follows:

For GOCCs:

1. Board Resolution approving the proposed loan, its purpose, terms and conditions
(Annex 2A.Pro-forma Board Resolution) or Corporate Secretary's certificate
on the
corresponding Board Resolution (Annex 34.Pro-forma Corp Sec certificate);
2. Data on the year-to-date outstanding borrowings (Annex 44.pro-forma report on
outstanding loans);
3. Department of Finance (DoF) comments on the proposed loan; and
4. Endorsement/clearance of the proposed loan by the head of the line department or
government agency with oversight functions over the borrowing entity, as
applicable.

For LWDs:

L. Board Resolution approving the proposed loan, its purpose, terms and conditions
(Annex 2A.Pro-forma Board Resolution) or Corporate Secretary's certificate on the
corresponding Board Resolution (Annex 3A.pro-forma Corp Sec certificate);
2. Data on the year-to-date outstanding borrowings (Annex 4A.Pro-forma report on
outstanding loans); and
3. Local Water Utilities Administration (LWUA) endorsement/clearance of the proposed
loan.

For SUCs:

L.Board Resolution approving the proposed loan, its purpose, terms and conditions
(Annex 2A.Pro-forma Board Resolution) or Corporate Secretary's certificate on the
corresponding Board Resolution (Annex 3A.pro-forma corp sec certificate);
2. Data on the year-to-date outstanding borrowings (Annex 4A.Pro-forma report on
outstanding loans); and
3. Commission on Higher Education (CHEd) endorsement/clearance of the proposed
loan.

Page 3 of4
 Also, please find below the name/s and details of our designated
contact person/s whom
you may coordinate with relative to this request for MB opinion:

L. (Name); (telephone '-csimile abile nos.); and (email address); ...

Very truly yours,

Name and signature

Head of GOCC/LWD/SUC

Name and signature

Lending institution's authorized
representativel

'The signature of the lending

institution's authorized representative is required only for loan availments.
Page 4 of 4
 Annex 2A

Form No.

BOARD MEM BERS' RESOTUTION

WE:
of legal age, after first being duly sworn in accordance with law,
hereby depose and state:

That we are the members of the Board of Directors of with

office and principal place of business at

That in a special meeting of the said Board of Directors of the aforesaid office held at
on at which majority of the directors were
present and acted throughout, the following resolution was unanimously passed and
approved:

RESOLUTION NO. XXX

Series of 20XX

'RESOLVED, that the (borrowins) with the (lendine institution) is hereby

APPROVED under the following terms and conditions:

Facility:
Amount:
Purpose:
Term:
Interest rate:
Repayment terms:
Security:
Availability/expiry date:
(other items in the list of terms and conditions)

"RESOLVED, FURTHER, that the authority of the President and CEO to sign,
countersign, execute and deliver any and all documents or papers necessary in order to
effect the renewal of the aforesaid credit line be, as it hereby AppRovED."

WE HEREBY CERTIFY that the above-quoted Board Resolution, a certified true

copy of which is attached, is existing and has not been amended in whole or in part.1

t This sworn statement/certification executed by the approving members of the board should have
exactly the same provisions as the actual Board Resolution. The said sworn statement is not necessarv if a

Page 1 of 2
 Annex 2A

lN wlrNEss WHEREOF, wE have hereunto set our hands this day of

20XX, in Philippines.

(MEMBERS', NAMES AND STGNATURES OF APPROVAL)

--

SUBSCRIBED AND SWORN to before me this day of _, 2OXX,

affiant exhibiting to me their Community Tax Certificate:

Member's Name CTC No. Date issued: place lssued:

Notary Public

Doc. No. _
Page No. _
Book No. _
Series of _

copy of the actual Board Resolution could be submitted which shows the orisinal signatures of approval of
the majority of the board members. ln any case, the document submitted should explicitly authorize the
borrowing transaction. lt should likewise declare the particular purpose/s and respective costs involved,
presenting these within the main body of the text of the document (not as attachments thereto) together
with the other items of the terms and conditions.

Page 2 of 2
 Annex 34

Form lrlo.

CORPORATE SECRETARYS' CERTI FICATE

of legal age, after first being duly sworn in accordance with

law,
hereby depose and state:

That in a special meeting of the said Board of Directors of the aforesaid

corporation /office heldat on at which
majority of the directors were present and acted throughout,
the following resolution
was passed and approved unanimously/by a majority:

RESOLUTION NO. XXX

Series of 20XX

'RESOLVED, that the (borrowine) with the (lendine institution) is hereby

APPROVED under the following terms and conditions:

Facility:
Amount:
Purpose:
Term:
Interest rate:
Repayment terms:
Security:
Availability/Expiry date :
(other items in the list of terms and conditions)

"RESoLVED, FURTHER, that the authority of the president and CEo to sign,
countersign, execute and deliver any and all documents
or papers necessary in order to
effect the renewal of the aforesaid credit line be, as it hereby
AppRovED."

I HEREBY CERTIFY that the above-quoted Board Resolution,

a certified true copy
of which is attached, is existing and has not been amended
in whole or in part.l

' This certification executed should have exactly the

same provisions as the actual Board Resolution. This
is not necessarv if a copy of the actual Board Resolution
could be submitted which shows the original
signatures of approval of the majority of the board members.
ln any case, the document submitted should
explicitly authorize the borrowing transaction. lt should likewise
decrare the particular purpose/s and

Page 1 of 2
 Annex 34

(NAME OF SECRETARY, STGNATURE AND DATE)

lN wlrNEss WHEREOF, I have hereunto set my hand this day of

20XX, in , philippines.

(NAME OF CHAIRMAN/PRESIDENI SIGNATURE

OF APPROVAL AND DATE)

SUBSCRTBED AND SWORN to before me this day of _ ,20XX,

affiant exhibiting to me their community Tax certificate:

secretary's Name crc No. Date issued: place rssued:

Notary Public

Doc. No. _
Page No. _
Book No. _
Series of

respective costs involved, presenting these within the main body of

the text of the document (not as
attachments thereto) together with the other items of the terms and conditions.

Page2 of 2
 Annex 4A

Please attach accomplished form in the

letter of request for Monetary Board
(MB) opinion on borrowing government
entity's proposed loan.

(Name of GOCC/LWD/SUCI

LIST OF OUTSTANDTNG TOANS AS OF (dd/mm/wwl

Lending Loan Loan Date of Amount released to For loans with MB

institution amount purpose first date (in Php million), opinion rendered,
(in Php release indicate if "partial' or indicate Resolution
million) "full" release no. and date

For loans thot hove been fully releosed, please ottoch Post-Borrowing Report (use as
temptate Annex
5A, Appendix 57A, of Circulor No. 926, s. 2016).

Certified true and correct:

Name and signature of

Head of GOCC/LWD/SUC
 Annex 5A

For submission to the BSp, through registered mail to tne

Director, Department of Economic Research, Bangro
Sentral ng Pilipinas, A. Mabini St. cor. p. Ocamoo St.
Malate, Manila, 1004, or by electronic mail to
mbopinion der(o bso.eov.ph

POST BORROWING REPORT

Name of Borrower
Monetary Board Resolution No.
Date of Monetary Board Opinion
Amount of Proposed Loan
Lending Institution
Final Terms and Conditions
Name of Facility
Actual Amount of Loan*
Purpose
Interest Rate (Actual)
lf floating, please indicate base and spread
Avail ment/Drawdown date*
Term (ln Years)
Maturity Date
Grace Period
Interest Payment ( Freq uency/Date)
Princi pal Payment (Frequency/Date)
National Government Guarantee
Collateral Guarantee/Security
Breakdown of fees and other related costs
Other relevant terms and conditions

* Please indicate if
on a staggered basis
 Annex 64
For submission to the BSP, through registered mail to
the Director, Department of Economic Research, Bangro
Sentral ng Pilipinas, A. Mabini St. cor. p. Ocampo St.
Malate, Manila, 1004, or by electronic mail to
mbopinion der@bsp.gov.ph

POST.IOAN RELEASE REPORT ON TOANS

Name of BSFt/lencJing institution:

Period covered, for the six months ending
@

A. Loans granted in full for the semester

Shou|dat|eastincludeinformationonthematurityuate,iffi

B. Past-due loans for the semester

(1) (21 (3) (4) (s) (6)

Total no. of borrowing GOCCs/WDs/SUCs Loan Amount Loan Maturity Interest Rate Mode of
government entities with delayed (Years) Payment
(BGEs) with payment due payment
 Annex 7A

Deadline: 15 banking days after end

of reference semester

SWORN CERTIFICATION ON TENDINGS TO

BORROWING GOVERNMENT ENTITIES

(Name of BSF|)

Pursuant to the requirements under circular No.-

dated
-_-- , w€
hereby certifyl that for the 6-month period ending < state reportinq
semester>:

tr There were no loans released to borrowing government

entities (BGEs) by
<Nome of BSFI>

n <Name of BSF|> had released loans to BGEs and that _

f, EXCEPT for loans in the attached list, loans released to BGEs were
covered with Monetary Board opinions on the borrowings,
probabre effects on monetary aggregates, the price
rever and tne
balance of payments, pursuant to section 123 0f Republic
Act
(R.A.) No. 76s3, otherwise known as "The New
centrar Bank Act,,

tr ALL loans released to BGEs were covered with Monetary Board

opinions on the borrowings' probabre effects on monetary
aggregates, the price level and the balance of payments, pursuant
to Section L23 of R.A. No. 7053.

To the best of our knowledge, the foregoing statements

are true and correct.

President or Officer of Equivalent Rank Ch ief Compliance Officer

TIN: TIN:
Com. Tax Cert. No.: Com. Tax Cert. No.:
lssued on: lssued on:
lssued at: lssued at:

SUBSCRIBED AND SWORN to before me, on this _ day of _, ot

exhibiting their respective Community Tax Certificate as indicated
above.

NOTARY PUBLIC
Doc. No. _;
Page No. _;
Book No. _;
Series of

'Check appropriate box

Page 1 of 2
 Annex 7A

TOANS RETEASED TO
BGEs WITHOUT THE REQUISITE MB OPtN|ON

(Nome of BSFI)

BGE Amount Date of J ustifications/expla nations for

Released Release the loan release without the
requisite MB Opinion

Page 2 of 2