Pursuant to Monetary Board Resolution No. 2116 dated 21 December 20I7 approving a six-month temporary window for registration of private sector foreign loans/borrowings, the following guidelines are hereby issued:

I.     Coverage

The temporary window shall be available for six (6) months starting from the effectivity date of this Circular, during which unregistered private sector foreign loans/borrowings  (without guarantee from the public sector) obtained without the requisite prior approval from the Bangko Sentral ng Pilipinas (BSP) that are outstanding and booked in the borrower’s records as of the date of this Circular may be applied for registration with the BSP.

II.     Mechanics

Private sector loans/borrowings as provided above may be applied for registration with the BSP within said six-month period under the following rules:

1. The loans/borrowings shall be/should have been used for projects/programs/purposes that are legitimate and not contrary to laws, regulations, public order, public health, public safety, or public policy.
   
   
2. Private sector borrowers shall, within the duration of the temporary window, submit to the BSP, through the International Operations Department (IOD), a duly accomplished “Application for Registration of Private Sector Foreign Loans/Borrowings”  (Annex A), together with document/s required therein and proof of payment of the applicable registration fee due to BSP.
   
   
3. A  Bangko  Sentral  Registration  Document  (BSRD)  shall  be  issued  to  the borrower (or his duly authorized representative), which shall be presented to the  FX  selling  institution,  together  with  the  minimum  documentary requirements under Appendix 1.3 of the Manual of Regulations on Foreign Exchange Transactions  (FX Manual), as amended to allow purchase of FX for payments (on original due dates) of principal, interest and fees (if any) on the loan/borrowing as indicated in the BSRD, without prior BSP approval.

III.   Registration Fee

Borrower-applicants  shall  pay  a fixed  registration  fee  amounting  to PHP20,000. The registration fee shall be payable to the BSP in the form of Manager’s   Check   or   Cashier’s   Check   upon   filing   of   the   application   for registration.

IV.  Reporting

The FX selling authorized agent banks (AABs)/AAB forex corps and private sector borrowers  shall report such FX sales and purchases,  respectively  to the BSP:

Reports	Deadline
A . By t he FX selling institutions -
- - If AAB: Schedule 4 (FX Disposition of Loans) of FX Form 1 (Consolidated FX Assets and Liabilities) - - If AAB forex corp: Report on Foreign Exchange Transactions	Within five (5) banking days from end of reference week
B . By t he private sect or borrowers -
- - Report on medium and long-term (MLT) foreign borrowings (For m 2 – Annex E.2 of t he FX Manual ); and/ or - - Report on short -t erm (ST) foreign borrowings f or (ST-2 – Annex E.1 of t he FX Manual)	Within five (5) banking days a ft er end of reference month

Non-compliance with/violations of any terms and conditions of the BSP registration,  including reportorial  requirements,  may result in the cancellation  of the  BSRD,   rendering   the  loan/borrowing   ineligible   for  servicing   using   FX resources of AABs/AAB forex corps.

V.   Effectivity

This Circular shall take effect on 15 January 2018.

FOR THE MONETARY BOARD:

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^[1] Foreign loans/borrowings are those owed by residents to non-residents, regardless of currency of denomination.