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:

œ1. 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:

œ3. 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:

œ4. 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:

œIII. 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:

œA. 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:

œD. 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 œPost-Bond Flotation Report ), and Annex 5 (template on the œPost-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