Proposed special issuance of up to P50B worth of 10-Year Zero- Coupon T-Bonds (Poverty Eradication and Alleviation Certificate (PEACe) Bonds)

CIRCULAR NO. 307 Series of 2001

The Monetary Board, in its Resolution No. 1679 dated October 25, 2001, on the proposed special issuance of up to P50 billion worth of 10-Year Zero-Coupon Treasury Bonds otherwise called as Poverty Eradication and Alleviation Certificates (PEACe) Bonds, decided to amend Resolution Nos. 878, 1261 and 1545 dated June 7, 2001, August 9, 2001 and September 27, 2001, respectively, so as to read as follows:

That the PEACe bonds have a total face amount of up to P50 billion and gross issue proceeds to be determined at the time of auction; and

That the PEACe bonds will be eligible as liquidity reserves only to the extent of the original gross issue proceeds determined at the time of the auction, plus capitalized interest on the underlying zero-coupon Treasury Notes as and when the corresponding interest is earned over the life of the bonds.

This Circular shall take effect on October 18, 2001.

FOR THE MONETARY BOARD:

RAFAEL B. BUENAVENTURA Governor