Amend the definition of non-performing loans as provided for under Circular No. 202

VY

OFFICE OF THE GOYERNOR

Circuia: No. 248 Series of 2000

Epproved the foliowing amendments io Circuar Nc. 202 dated May 2? 9e9 and Circuiar No. 143 dated October 1 1967: Tne Monetary Board, in its Reso'ution teo. 7o7 dated Mey 5. 2000

Htad es lollows: SECTION 1. Section 1 of Circular No. 202 is rereby amencec to 'SEcTIOr 1. Non-performing ioans - Detinition.

outstendng paiance hereci snali b. consde'ec 'ey r.ave beoome past cue in accorenee witn eysring ruies and reguletions. Tnis shell appy co oens pevab:- perorming. unpzis fp- tnirty (3c) days or more afer aue care or are : arral installments. - umr aum and ioans payeble in cueriey ceri-annue efer to ioan aocounts whoss principal anaio- inrerest is Non-perorming Joars shall. as a gereral rie irYrcK CeeE he D T:CT

be corsicerod non-periormirg vrna three eralrarts are ir crea i-aatiments. the total outstarding haarca r oreot shet in tre case o? loans payate monny

eienyDecomeaecucaeoeawr erearege3 reaohes ten percer: o h: el oe reoavaDie baance ssni-morhtnstalmene te ctai ovoa naie oe crere prcer Crcuer Fr.? ceecoton.ee sneh be considered ae past aue whe" tne tei enount o ie., tns entire outstanding naanoo ct ne icarreneivae eeot cnei me ooneneraemonasmrrs areer r ne casa or icans cayebie mLry.Maery.

periorming reauations Festructured loans shat acoaraance W Y existine 00nES0 recsara

DNGP-HPPINES 2O +--*...

Accounte for Banks shall be considered non-performing All items in litigation as defined in the vanual of

Ioans.

read as foliows: SEcTiON z. Section 1 of Circuiar No. 143 is hereby amended to

Section 1. Item e of Subsec. X305.1 of the Manual of Regulatiors for Eanks is hereby amended to read as follows:

"Loans/receivabies paveble in instaliments -- the total outstanding balance thereof shall be considered past due in accordarce wit the foliowing schedule:

Mota at Fayment Sarnestraty Quarteriy Anua!v Monthly installmente in Arrears Minimum Number of 3 N

arrearages reaches iwenty per cent (20%) of the total outstanding outstanding corsidered as past dus, regardess of the number of nstaliments ir arrears: Provided further, tnet for modes os Froviaed, nowever, that wnen the total amount of balance of the ioan/receivable, the total balarce ot the loan/receivable shall be

peymerte other thar inose jisted above (e.g.. dally, weeky or somi-mortry), *ne entire oustanding baianco c the ioarecoivenie shal pe corsioered as past due when the wtat amourt os arreareges renohes ten por cent (io%) of the total ioan recevanie natenoe

-or this purpose, tne term installments' shall refer ko principal and/or interest amortizations hat are due or severel daros as irdipated/specified in the loan doouments.

This Circuiar shall wke effeot immediateiy

FOR THE MONEtARY BOARD:

A

June 25 2000 AVANDO M.TETANGCO,JT Officer-in-Charge

Pag3

herewith and shall take effect immediately. This Circular supersedes all previous BSP issuances which are inconsistent

FOR THE MONETARY BOARD:

AMANDO M. TETANGCO, JR Ofticer-in-Charge

June Vl 2000