(NAR) VOL. 18 NO. 1/JANUARY - MARCH 2007
Reclassification of investments in foreign currency denominated NG/BSP bonds/debt securities booked under the HTM category shall be exempted from the “tainting” provision of Circular No. 476 dated 16 February 2005, as amended, which requires reclassification of the entire HTM portfolio to the Available for Sale (AFS) category and prohibits the use of the HTM category during the reporting year and for the succeeding two full financial years whenever a financial institution sells or reclassifies more than an insignificant amount of HTM investments before maturity for reasons other than those specified under the said Circular: Provided, That only the outstanding HTM securities as of the effectivity date of this Circular shall be reclassified: Provided further, That the reclassification shall be made anytime but only within thirty (30) calendar days after the effectivity date of this Circular. The subject securities once classified shall be accounted for in accordance with the measurement requirements of their new category (i.e. AFS).