Monetary Board Resolution No. 579 dated 15 May 2008

2a

SUPERVISION AND EXAMINATiON SECTOR OFFICE OF THE DEPUTY GOVERNOR

CIRCULAR LETTER NO. CL - 2008 -- 050

To All Banks

Subject Monetary Board Resolution No. 579.A dated 15 May 2008

Resolution No. 579.A dated 15 May 2008, all Banks are reminded of the Pursuant to the instructions of the Monetary Board (MB}, in its

reguirement of prior MB opinion under Section 123 of R.A. No. 7653 (The New Central Bank Act) on the monetary implications of the borrowings of the Government, or any of its political subdivisions or instrumentalities.

Section 123 of R.A. No. 7653 provides

"Financiai Advice on Official Credit Operations. --- Before undertaking any credit operation abroad, the Government, through the Secretary of Finance, shafl request the opinion, in writing, of the Monetary Board on the monetary implications of the contemplated action. Such opinions must similarly be requested by all political subdivisions and instrumentalities of the Government before any credit operation abroad is undertaken by them.

exchange resources and obligations of the nation and on the effects of the The opinion of the Monetary Board shall be based on the goid and foreign proposed operation on the balance of payments and on monetary aggregates.

operation on monetary aggregates, the price level, and the batance of payments." instrumentalities, contemplates borrowing within the Philippines, the prior Board may render an opinion on the probable effects of the proposed Whenever the Government, or any of its politicai subdivisions or opinion of the Monetary Board shall likewise be requested in order that the

For your guidance and strict compliance.

0 C 08 Nestor a.EspeniliA, Jr Deputy Governor QGAugust 2008

PAnAnALAPiNg MAtAtAg, BAnSang PAnAtAg

A. Mabini St., Malate 1004 Manila, Philippines Trunkline (632) 524-70-11 URL:www.bsp.gov.ph * e-mail: [email protected]