Amendments to Circular No. 1288

CBP CIRCULAR NO. 1374 Series of 1992

The Monetary Board, in its Resolution No. 1100 dated November 23, 1992, approved the following amendments to Circular No. 1288:

a. Item c. 1 of Section 1 is hereby amended to read as follows:

"1) whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, amounts to Ten Million Pesos (P10,000,000) and below:"

b. Sec. 3 is hereby amended to read as follows:

"SECTION 3. Funds set aside in accordance with the foregoing requirement shall be made available for any of the following:

"a. loans to small enterprises;

"b. instruments as may be offered by the SBGFC;

"c. purchase of small enterprises' promissory notes from lending institutions and/or Non-Government Organizations (NGOs); and

"d. equity investments by member banks in, and loans by member banks to, the BAP Credit Guaranty Corporation (BCGC).

"The funds set aside which have not been invested in either (a), (b), (c) or (d) above may be held in the form of Cash on Hand, Due from Central Bank, and/or Due from Local Banks; provided, that these are free, unencumbered, not hypothecated, not utilized or earmarked for other purposes; provided further that funds held in the form of Due from Local Banks will be allowed only up to the end of March 1993.

"The Accounting Department shall maintain a special account for the amount deposited with Central Bank for this purpose, which amount shall not form part of the banks' legal reserves."

This Circular shall take effect immediately.

JOSE L. CUISIA, JR. Governor