Monitoring LGU bond issues

CIRCULAR LETTER Series of 2002

TO      :       All Banks and NBQBs

Pursuant to Item 2 of the Monetary Board Resolution No. 2020 dated November 17, 2000 instructing the BSP management to assist the Department of Finance (DOF) in setting up the monitoring system for Local Government Unit (LGU) bond issues, Schedules 2 (Schedule of Loan Portfolio and Other Accommodations) and 3 (Schedule of Trading Accounts Securities-Investments, Available for Sale Securities and Investments in Bonds and Other Debt Instruments) of the Consolidated Statement of Condition are amended by disaggregating the transactions with Local Government Units (LGUs), i.e., (1) loans extended to LGUs and (2) investments in debt instruments of LGUs, into provincial, city and municipal levels.

Moreover, the Schedule of Loan Portfolio and Other Accommodations (for Banks) and Schedules of Loans/Receivables, Trading Account Securities-Loans and Underwritten Debt Securities (for NBQBs) were also revised to update the list of 14 Non-Financial Public Enterprises.

For your ready reference and guidance, attached are the proposed formats, by type of bank/NBQBs, of Schedules 2 and 3, as revised –

I.     Schedule of Loan Portfolio and Other Accommodation

A.   Commercial Banks Annexes

KB 1.1, KB 1.2 & KB 1.5

B.   Thrift Banks

Annexes TB 2.1 and TB 2.2

C.   Rural Banks

Annexes RB 3.1 and RB 3.2

II.     Schedule of Loans/Receivables/Trading Account Securities-Loans and Underwritten Debt Securities

A.   Investment House with QB

Annexes IH 4.1 and IH 4.2

III.    Schedule of Loans/Receivables/Trading Account Securities-Loans

B.   Financing Companies with  QB

Annexes FC 5.1 and FC 5.2

IV.   Schedule of Trading Account Securities – Investments, Available for Sale Securities and Investments in Bonds & Other Debt Instruments

A.   Commercial Banks

Annexes KB 1.3 and KB 1.4

V.    Schedule of Trading Account Securities – Investments and Investments in Bonds & Other Debt Instruments

B.   Thrift Banks

Annexes TB 2.3 and TB 2.4

VI.    Schedule of Investments in Bonds and Other Debt Instruments

C.   Rural Banks

Annexes RB 3.3 and RB 3.4

VII.  Schedule of Underwritten Securities, TAS – Investments, Available for Sale Securities and Investments in Bonds and Other Debt Instruments

A.   Investment House with QB

Annexes IH 4.3 and IH 4.4

VI.   Schedule of Trading Account Securities – Investments, Available for Sale Securities and Investments in Bonds and Other Debt Instruments

A. Financing Companies with QB

Annexes FC 5.3 and FC 5.4

Herein amendments shall be effective for month ending June 30, 2002.

For compliance.

ALBERTO V. REYES Deputy Governor

Annexes