Purchase of Philippine debt papers representing debt papers of Philippine public sector and private sector obligors

CIRCULAR NO. 359 Series of 2002

Pursuant to Monetary Board Resolution No. 1638 dated 12 November 2002, regular banking units of local universal and commercial banks are hereby prohibited from purchasing Philippine debt papers representing dept papers of Philippine public sector and private sector obligors which were restructured during the period of moratorium in the payment of external debt.  They may, however, invest in, or purchase, other foreign currency denominated debt instruments, subject to applicable rules and regulations, particularly on risk management.

For purposes of this Circular, Philippine "Brady" bonds converted into exchange bonds or notes are not considered restructured Philippine debt papers and therefore, not covered by the prohibition.

This Circular shall take effect immediately.

FOR THE MONETARY BOARD:

RAFAEL B. BUENAVENTURA Governor