Guidelines in Processing Requests for Monetary Board Opinion on the Monetary Balance of Payments Implications of Proposed Domestic Borrowings by Government Entities Pursuant to Section 123 of Republic Act 7653

Beruoxo SerurneL Ne ptLtptNAs OFFICE OF THE GOVERNOR Circular No.926 Series of 2016 Subject: Guidelines in Processing Requests for Monetary Board opinion on the Monetary and Balance of payments rmplications of proposed Domestic Borrowings by Government Entities pursuant to section 123 of Republic Act No.7553 The Monetary Board, in its Resolution No. 1125 dated 22 June 2lt6,approved the amendments in Section X398 of the Manual of Regulations for Banks, as follows: section 1. subsection X398.1 shail be amended to read as follows: 'x398.1 Domestic borrowings by local government units (tGUs) pursuant to section 123 ol R.A. No. 7653. The domestic borrowings of LGUs within the Philippines, the procedures to be observed as well as the documentary requirements to be submitted, relative to the requests for Monetary Board (MB) opinion on the probable effects of the proposed credit operation on monetary aggregates, the price level and the balance of payments (BOp), pursuant to Section L23 of Republic Act No. 7653, as well as other pertinent laws and regulations shall be governed by the guidelines as contained in Appendix 57. Section 2. Subsection X398.3 is hereby added as follows: 'x398.3 Domestic borrowings by Government-owned and/or {ontrolled Corporations (GocCs), Local water Districts (twDs) and State Universities and colleges (sucsl pursuant to section L23 of R.A. No. 7653. The domestic borrowings of GoCCs, LWDs, and SUCs within the Philippines, the procedures to be observed as well as the documentary requirements to be submitted, relative to the requests for Monetary Board (MB) opinion on the probable effects of the proposed credit operation on monetary aggregates, the price level and the balance of payments (BoP), pursuant to section L23 of Republic Act No. 7653, as well as other pertinent laws and regulations shall be governed by the guidelines as contained in Appendix 57A.

section 3. subsection X398.5 is entirely amended to read as follows: 'x398.5 Enforcement actions. Any violation of Section X398 shall be subject to appropriate enforcement/supervisory action/s provided under Section X009 of the Manual of Regulations for Banks and Sections 36 and 37 of Republic Act No. 7653, as well as those contained in other applicable regulations of the BSp. lmposition of applicable enforcement action shall be on a per loan/borrowing account, regardless of the number of tranches or releases from the same loan/borrowing." Section 4. Effectivity. This Circular shalltake effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. FORTHE MONETARY BOARD: /-qF- AMAND9 M. TETANGCO, JR. / Governor l7 September 2016

Appendix 57 Appendix 57. Guidelines on Requests for Monetary Board opinion on the Monetary and Balance of Payments lmplications of Proposed Domestic Borrowings by Local Government Units (tGUs) pursuant to section L23 of R.A. No. 7653 Pursuant to Monetary Board Resolution No. 1125 dated 22 June 20L6, the following guidelines shall govern the domestic borrowings of local government units (LGUs) in line with Republic Act No. 7653 (The New Central Bank Act), as well as other pertinent laws/regulations. l. Coverage This shall govern domestic borrowings of LGUs within the philippines, the procedures to be observed and the documentary requirements to be submitted, relative to the request for Monetary Board (MB) opinion on the probable effects of the proposed credit operation on monetary aggregates, the price level and the balance of payments (BOP), pursuant to Section L23 of Republic Act No. 7653. il. Procedures L. The LGU shall submit a written request to the Bongko Sentrol ng pitipinas ("BSp.) for MB opinion on the monetary and BoP implications of its proposed borrowing prior to the loan release. The request shall be accompanied by the required documents and information listed in section llt of this Appendix. 2. The BSP shall acknowledge receipt of the request, with an initial evaluation of the documents/information submitted. No request will be processed should there be any deficiency or inconsistency found in the documents/information submitted. once the LGU has submitted the complete set of required documents/information, the matter shall be elevated to the MB for an opinion on the probable monetary and BOP implications of the proposed loan. 4. The LGU shall be informed in writing of the MB's decision on its request for opinion and shall contain the following conditions: a. The loan proceeds shall only be released by the lending institution to the LGU subject to the submission of a duly executed ordinance approving the proposed borrowing, its purpose, terms and conditions, as well as the provincial/city/municipal validation of the ordinance, as applicable; b. The opinion of the MB is limited to the assessment of the monetary and Bop implications of the proposed borrowing, pursuant to Section L23 of Republic Act No. 7653. The said opinion is based on: (i)the information contained in the

Appendix 57 documents submitted; and (ii) the assumption that the proceeds of the borrowing will be used for the intended purpose described in the documents submitted; c. The MB opinion is varid onry for one (1) year from the date of issue. The validity period refers to the time within which the proposed loan is to be released in part or in full. lt commences on the date of the BSp letter transmitting the said MB opinion on the monetary and Bop implications of the LGU's proposed loan; d' The LGU shall submit to BSP a post-borrowing report on the final terms and conditions and on the utilization of the proceeds of the borrowing within 30 days after the finar disbursement of the roan proceeds; and e. The MB opinion should not in any way be construed as exempting the borrowing LGU from the applicable requirements and/or prohibitions Jnoer existing laws, rules and regulations. 5. No opinion will be issued bythe MB in case the LGU loan has already been partially or fully disbursed. 6. For LGU loans with amounts that exceed the borrowing capacity, as indicated in the certification on the borrowing and debt service capacity issued by the Bureau of Local Government Finance (BLGF), the MB opinion will refer only to the amount that is within the borrowing capacity. 7. The LGU shall request a new MB opinion should there be any increase in the loan amount in excess of LO%, or a change in the manner of acquisition of the project/s to be funded (i.e., whether for importation or local purchase) after an MB opinion has been issued; provided that no release has been made of the loan. LGUs that are unable to avail of their loan during the one (1) year validity period shall request for a new MB opinion on their proposed loan. They shall submit to BsP the required documents and information under item 1 of Section lll of this Appendix. However, the LGU would only need to submit the required documents under items a to c of item 2 under Section lll of this Appendix to the lending institution if there are changes to the previously submitted documents. ilt. REqUIRED DOCUMENTS AND INFORMATION t. Request for MB ooinion. To support the request for MB opinion, the LGU must submit the following documents/information to BSp:

Appendix 57 Letter from the LGU requesting for MB opinion on its proposed loan (use the prescribed form attached as Annex 1). The letter should contain: i. lnformation on the loan amount, purpose with breakdown of specific project/s to be funded and corresponding cost/s, manner of acquisition (i.e., whether through importation or tocal purchase), name of lending institution, interest rate, term/tenor, fees and other charges, lendinl institution's source of fund for the roan, and name of designated contaci person responsible for coordinating with the BSp along with contact information; ii' Statement certifying that no disbursement, in full or partial amounts, has been made on the loan; and iii. The names and signatures of the LGU's chief executive and the lending institution's authorized representative. b. Valid BLGF certification on the borrowing and debt service capacity of the LGU; and c. lnformation on the LGU's year-to-date outstanding loans (use the prescribed form attached as Annex 2). 2. Release of loan proceeds. The lending institution shall require the submission of the MB opinion on monetary and BOP implications prior to the release of the loan proceeds or the release of the first tranche, in case of loans with muttiple tranches. In addition, lending institutions may release the loan proceeds only upon receipt from the LGU of the following documents/information: a. ordinance approving the proposed loan terms and conditions as well as the specific purpose and corresponding amount/s of the project/s to be funded (sample copy attached as Annex 3); b. other applicable requirements under Republic Act No. 71G0, such as the provincial/city/municipal validation of the ordinance, as applicable. c. Waiver on the confidentiality of investment and bank deposits, whether in peso or foreign currency, duly executed by the govern or/mayor/ barangay chairman, as the case may be, and supported by a .,waiver resolution,, (sample copy attached as Annex 4).

Appendix 57 The BSP may request for additional documents and information from the LGU or the lending institution, as may be deemed necessary, to support the request for MB opinion. LGUs requesting for MB opinion on proposed borrowings to be obtained from lending institutions other than BSP-supervised financial institutions shall (BSFls), submit to Bsp a written request accompanied by the reluired documents/information enumerated above. tv. Reportorial requirements Post-Borrowine Report (pBRl. The borrowing LGU shail submit to BSp, through a letter addressed to the Director, Department of Economic Research or through electronic mair addressed to [email protected], post-borrowing a report (PBR) that will indicate the actual amount of loan, the final terms and conditions, and utilization of the proceeds of the borrowing within 30 calendar days after the final release of roan proceeds (use the prescribed form attached as Annex 5/5.1). 2. Post-Loan Release Report (PLRR). The lending institutions shall submit to BSp, through a letter addressed to the Director, Department of Economic Research or through electronic mair addressed to [email protected], post-loan release report on LGU loans granted a semestral in fuil within the last six months that will indicate the actual amount of loan released as well as the final terms and conditions thereof, within 30 carendar days after the end of each seme*., (rr. the prescribed form attached as Annex 6). 3. The BSFts shatl submit, through a letter addressed to the .pproprirt" a"partment of the sEs, within fifteen (15) banking days after every semester, a duly notarized certification on loan releases to LGUS signed by the president or an ofiicer of equivalent rank and the chief compliance officer. such certification shall be considered as a cotegory A-2 report for purposes of imposing fines on the delayed submission of required reports pursuant to existing regulations. (use the prescribed form attached as Annex 7).

Annex 1 (Name of Local Government Unit) (Complete address) (Contact number/s: telephone and facsimile) Date: The Governor Bangko Sentral ng pilipinas A. Mabini cor. P. Ocampo Streets, Malate Manila, Philippines 1004 tGU REQUEST FOR MONETARY BOARD (MB) OPINION Dear Governor: Pursuant to Section L23 of Republic Act No. 7653 (The New Central Bank Act), may we request for the opinion of the Monetary Board (MB) on the monetary and balance of payments implications of our proposed loan, details of which are provided below. For term loons: Details of proposed loan b. Total loan amount (in php million Pleose provide breakdown of specific ploiects, including cost ond mode of ocquisition:2/ Project 1: (Proiect title/detalls) (Cost in Php million) (Mode of acquisitionl Project 2: (Proiect title/details) (Cost in Php million) (Mode of acquisition) d. Interest rate (in percent per annum) Please provide indicative rate ond indicote if e. Term/tenor (in no. of g. Lending institution's source of fund for the loan " Loan information should be validated wittr ttre 2/ For mode of acquisition, please indicate whether for importation or local purchase; for acquisition of heavy equipment, please provide list of equipment to be

For bond flototion: Details of proposed bond flotation c. Amount (in php million e. Purpose/s Please provide breakdown oy speciJiiproiects, cost ond mode of ocoui: (in no. of years) Relative to this, we would like to certify that no disbursement, in part or in full, has been made on the proposed loan. Please find attached documents and information in support of our request, as follows: 1' Latest DoF-BLGF certification on the net debt service ceiling and borrowing capacity; and 2' nformation on the LGU's year-to-date outstanding loans (use the f Annex 2, Appendix 57, of Circulor No. 926, s. 2016). form attached os Also, please find below the name/s and details of our designated contact person/s whom you may coordinate with relative to this request for MB opinion: L. (Name); (telephone --csimile -'bile nos.); and (emailaddress); ... Very truly yours, Name and signature Governor/Mayor/Brgy. Cha i rma n Name and signature Lending institution,s authorized representativel ' The signature of the lending institution's authorized representative is required only for loan availments.

Annex 2 Please attach accomplished form in the letter of request for Monetary Board (MB) opinion on the LGU,s proposed toan. (Name of LGUI tlST OF OUTSTANDTNG TOANS AS OF (dd/mm/wwl Lending Loan Loan Date of Amount released to For loans with MB institution amount purpose first date (in Php million), opinion rendered, (in Php release indicate if "partial, or indicate Resolution million) 'full" release no. and date For loans thot have been fully releosed, please ottach Post-Borrowing Report (use os temptate Annex 5/5.7, Appendix 57, of Circutar No. 926, s. 2016). Certified true and correct: Name and signature of Governor/M ayor / Brgy. Chairman

Annex 3 Sample LGU Ordinance fo,r Proposed borrowinq ftoanl Republic of the Philippines Province of _ Municipality / Gity of OFFICE OF THE SANGGUNIANG BAYAN / PANLUNGSOD / PANLALAWIGAN ORDINANCE1 NO. Series of ORDINANCE AUTHORIZING THE PROPOSED BORROWING OF THE CITY I MUNICIPALITY / PROVINCE OF , IN THE AMOUNT OF (P_) TO FUND rHE BE lT ENACTED, as it is hereby ENACTED, by the Sangguniang Bayan I Panlungsod / Panlalawigan of in session assembled that: SECTION 1. The Municipal / City Mayor / Provincial Governor, in representation of the Municipality / City / Province, hereinafter referred to as the "Municipality" / "City" / "Province", is hereby authorized to enter into Name of loan aqreemenUcredit facilitv with name of lender in accordance with Section 297 of RepuUtic Rct t to Zt OO ortheLoca|GovernmentCode,intheamountof-(P-)undertheterms and conditions herein set forth and such other terms and conditions as may be agreed upon with any person, corporation or entity for the purpose of funding priority projecUs, and subject to the requirements under Section 123 of Republic Act No. 7653 as implemented by the Bangko Sentral ng Pilipinas Circular No. 402. In this connection, the Municipal / City Mayor / Provincial Governor shall have full power and authority to represent the Municipality / City / Province in negotiating the terms and conditions for the said borrowing and in signing, executing and delivering such agreements, contracts, deeds, papers, and documents as may be necessary and proper for the full and total implementation of the authority herein granted; SEcTloN 2. The said priority projecVs herein specified as the is/are hereby certified to be a local infrastructure and/or other socio-economic development projects in accordance with2 the approved local development plan and public investment program for the period or for the current year of the Municipality / City / Province of an-d is supported by a final feasiUif ity study prepared by which is also hereby approved / has been approved under the Sanggunian Bayan / Panlungsod / Panlalawigan Resolution No. _ dated ' Based on the Local Government Code (e.9. Sections 305 (a) and SS (b)). 2 Secfions 296 and 297 of the Local Goveriment Code.

Ordinance No._, page 2 of 3 SECTION 3. Consistent with the covering assignment, mortgage contracts, and such othei"gn*r"nts contract, deeds and as maybe entered into by the Municipality / city / Province in connection with ihe borrowing, the features, terms and conditions shalr be as foilows and are hereby "pfrou"o, 3.1 Project Name Borrower Amount Purpose/s3 Item 1 or project A_ (description, amount) Sub-item a-(description, sub_amount) Sub-item b-(description, sub_amount) Sub-item c-(description, sub-amountj Item 2 or project B- (description, amount) Sub-item a-(description, sub_amount) Sub-item b-(description, sub_amount) Sub-item c-(description, sub_amountj ... Term Manner of payment Interest Principal Interest rate Collateral/G uarantee/Secu rity: Front-end Fee Commitment Fee Guarantor Guarantee Fee sinking Fund (if appricabre) or other Funding Arrangements SECTTON 4. The Municipatity / City / Province hereby appropriates the entire proceeds of the borrowing exclusively to finance the and other financial obligations relative thereto. sEcTloN 5' Any ordinance or parts thereof, inconsistent hereby repealed or amended accordingly. with this enactment is sEcTloN 6' This ordinance shall take effect upon its publication with all procedures required under Republic ncrr.rt.-7160 and compliance including the affixation of signatures orine sanjgrnian of an oroinance for its validity, Bayan rpr.rrrJsod / panlalawigan members' in concurrence thereto, composing itleast a m-ajority p,eieoi, out of the total of members, on all the pages of this Ordinance._ t Please indicate the specific proiect/s, proiect' if there is more * ln particular' but lh9n one pioiect. "r! g basic/simpte breakdown into the cost/components of each tncluag ognowii,{roJ it"r", if any witt be inctuded 'sectrons in the toan. not limited io, 54-56, sg-5g. This inctudes the mayor,s/governor,s/local executive's signature on alt pages. chief

Ordinance No._, page 3 of 3 SO ORDAINED / ENACTED. RESOLVED FURTHER, that copies of this Ordinance be furnished the Honorable Governor/Mayor (as the case mav be), the Municipal / City / Provincial Accountant, and the Municipal / City / Provincial Auditor, all of this Municipality / City / Province of the and the Bangko Sentral ng Pilipinas for their information an-d appropriate action. ADOPTED this _ day of 201 SANGGUNIAN MEMBERS: Hon. Hon. Hon. Hon. Hon. Hon. Hon. Hon. CERTIFIED TRUE AND CORRECT: SB/SP Secretary ATTESTED: Municipal / City Vice Mayor, or Vice Governor or Presiding Officer APPROVED: Date Approved:_ Municipal / City Mayor / Provincial Governor VALIDATED AS CONSISTENT WITH LAW:s Sanggu niang Panlalawigan Secretary Date Validated: Provincial Governor s An ordinance passed by a municipality or component city has to be validafed as consisfent with taw thru a review by the Sangguniang Panlalawigan (Sec. 56 of LGC). For such case, the ordinance should tikewise be signed by the appropriate officers of the Sanguniang Panlalawigan on all pages, or otherwise vatidated through a separate document. Similarly, Sec. 57 provides for the review of Barangay Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan. Other provincesissue a separate certification or reso-lution on said provincial review, if applicable.

Annex 4 (Name of Local Government Unit) (Complete Address) (Tel.Nos./FaxlEmail) Date: The Governor Bangko Sentral ng pilipinas Dear Governor: This has reference to our request for the opinion of the Monetary Board (MB) on the probable effects on monetary aggregates, price level and balance of payments of the proposed borrowing amounting to by the province/city/Municipality _ of Pursuant to the provisions of sections 2 and 3 of Republic Act No. 1405 and other laws relating to the secrecy of bank deposits, Resolution No. _dated_ (certified true copy attached) was passed by the erovince/city/tu*6altty of _our|ending/trusteebankandallbanksorfinancia| institutions with which we have transactions to disclose to the Bangko Sentral ng Pilipinas (BSP) all information pertaining to the deposits, investments, loans or other transactions including the history or status of our dealings with said banks or financial institutions and for the BSP to make all inquiries as may be necessary regarding the same' The BSP is likewise authorized to disclose and share any such information furnished or obtained from said banks or financial institutions to the Department of Finance in relation to the performance by said Department of its functions. Thank you. Very truly yours, Name and signature Governor/Mayor/Chairma n

Annex 5 For submission to the BSp, through registered mail to the Director, Department of Economic Research, Bangko Sentral ng Pilipinas, A. Mabini St. cor. p. Ocampo St. Malate, Manila, 1004, or by electronic mail to mbopinion [email protected] POST BORROWING REPORT Name of Borrower Monetary Board Resolution No. Date of Monetary Board Opinion Amount of Proposed Loan Lending Institution Final Terms and Conditions Name of Facility Actual Amount of Loan* Purpose Interest Rate (Actual) lf floating, please indicate base and spread Avail ment/Drawdown date* Term (ln Years) Maturity Date Grace Period Interest Payment ( Frequency/Date) Principal Payment (Freq uency/Date) National Government Guarantee Collateral Gua rantee/Security Breakdown of fees and other related costs Other relevant terms and conditions * Please indicate if on a staggered basis

Annex 5.1 For submission to the BSp, through registered mail to the Director, Department of Economic Research, Bangxo Sentral ng Pilipinas, A. Mabini St. cor. p. Ocampo St. Malate, Manila, 1004, or by electronic mail to mbopinion [email protected] POST BOND FTOTATION REPORT Name of lssuer Monetary Board Resolution No. Date of MB Opinion Amount of Proposed Bond Flotation Final Terms and Conditions Bond Name /Label Amount of Bonds Actually Sold Purpose of Bonds lssue Price Coupon Rate Date of Flotation Term (ln Years) Maturity Date/Grace period Denomination Medium of Sale I nterest Payment ( Freq uency/Date) Principal Payment (Frequency/Date) Col latera I G ua rantee/Secu rity Trustee Bank FiscalAgent Underwriter Guarantor Financial Advisor, if any Breakdown of fees and other charges: Trustee Fee Underwriting Fee Guarantee Fee FinancialAdvisor Fee Other Fees List of lnvestors/Amount purchased Settlement Mode

Annex 5 For submission to the BSP, through registered mail ro the Director, Department of Economic Research, Bangko Sentral ng Pilipinas, A. Mabini St. cor. p. Ocampo St. Malate, Manila, 1004, or by electronic mail to mbopinion [email protected] POST.TOAN REIEASE REPORT ON TOANS Name of BSF|/lending institution: Period covered, for the six months ending (mm/dd/vwv) A. Loans granted in full for the semester should at least include information on the maturity date, interest rate, and paym-nt terms. B. Past-due loans for the semester (1) (2) (3) (4) (s) (5) Total no. of local LGUs with delayed Loan Amount Loan Maturity Interest Rate Mode of government units (LGUs) payment (Years) Payment with payment due

Annex 7 Deadline: 15 banking days after end of reference semester SWORN CERTIFICATION ON TENDINGS TO tOCAt GOVERNMENT UNITS (Name of BSF|) Pursuant to the requirements under circular No. _ dated _ , w€ hereby certifyl that for the 6-month period ending < state reportinq semester>: I There were no loans released to local government units (LGUslbV <Name of BSFI> n <Nome of BSFI> had released loans to LGUs and that _ I EXCEPT for loans in the attached list, loans released to LGUs were covered with Monetary Board opinions on the borrowings, probable effects on monetary aggregates, the price level and the balance of payments, pursuant to section 123 of Republic Act (R.A.) No. 7653, otherwise known as,,The New Central Bank Act,, n ALL loans released to LGUs were covered with Monetary Board opinions on the borrowings' probable effects on monetary aggregates, the price level and the balance of payments, pursuant to Section 123 of R.A. No. 7653. To the best of our knowledge, the foregoing statements are true and correct. President or Officer of Equivalent Rank Chief Complia nce Officer TIN: TIN: Com. Tax Cert. No.: Com. Tax Cert. No.: lssued on: lssued on: lssued at: lssued at: SUBSCRIBED AND SWORN to before me, on this day of _, dt exhibiting their respective community Tax certificate as indicated above. NOTARY PUBLIC Doc. No. _; Page No. _; Book No. _; Series of _. t Check appropriate box

Annex 7 LOANS RETEASED TO LGUs WITHOUT THE REQUISITE MB OPINION (Nome of BSH) tGU Amount Date of ustifications/explanations for J Released Release the loan release without the _ requisite MB Opinion Page2 of 2

Appendix 57A Appendix 57A. Guidelines on Requests for Monetary Board opinion on the Monetary and Balance of Payments lmplications of Proposed Domestic Borrowings Government-owned andlor -controlled corporations (Goccs|, by Local water Districts (twDs) and state universities and colleges (sUCs) pursuant to section 123 of R.A. No. 76s3 Pursuant to Monetary Board Resolution No. 1125 dated 22 June 20L6, the following guidelines shall govern the domestic borrowings of Government-owned and/or - controlled corporations (Goccs), Local water Districts (LWDs) and state universities and colleges (sUCs), in line with Republic Act No. 7653 (The New central Bank Act), as well as other pertinent laws/regulations. l. Coverage This shall govern domestic borrowingsl of Goccs,2 LWDs, and sUCs, herein collectively referred to as "borrowing government entities,, (,,BGEs,,), within the philippines, the procedures to be observed and the documentary requirements to be submitted, relative to the request for Monetary Board (MB) opinion on the probable effects of their proposed credit operation on monetary aggregates, the price level and the balance of payments (BoP), pursuant to section r23 of Republic Act No. 7653. il. Procedures 1. The BGE shall submit a written request to the Bangko sentror ng piripinos(,,BSp,,) for MB opinion on the monetary and BoP implications of its proposed borrowing prior. to the loan release. The request shall be accompanied by the required documents and information listed in Section lllof this Appendix. 2. The BSP shall acknowledge receipt of the request, with an initial evaluation of the documents/information submitted. No request will be processed should there be any deficiency or inconsistency found in the documents/information submitted. 3. once the BGE has submitted the complete set of required documents/ information, the matter shall be elevated to the MB for an opinion on the probable monetary and BOP implications of the proposed loan. The BGE shall be informed in writing of the MB's decision on its request for opinion and shall contain the following conditions: t The term 'borrowings, shall include credit lines of BGEs. 'Goccs shall cover agencies/institutions classified as such by the Gocc Governance commission (GCG). Page 1 of5

Appendix 57A a. The opinion of the MB is limited to the assessment of the monetary and Bop implications of the proposed borrowing, pursuant to Section L23 of Republic Act No. 7653. The said opinion is based on: (i) the information contained in the documents submitted; and (ii) the assumption that the proceeds of the borrowing will be used for the intended purpose described in the documents submitted; The MB opinion is valid only for one (1) year from the date of issue. The validity period refers to the time within which the proposed loan is to be released in part or in full. lt commences on the date of the BSp letter transmitting the MB opinion on the monetary and Bop implications of the BGE's proposed loan; The BGE shall submit to BSp a post-borrowing report on the final terms and conditions and on the utilization of the proceeds of the borrowing within 30 days after the full release of the loan proceeds or final availment of the credit facility; and d. The MB opinion should not in any way be construed as exempting the BGE from the applicable requirements and/or prohibitions under existing laws, rules and regulations. 5. No opinion will be issued by the MB in case the borrowing has already been partiatty or fully disbursed. The BGE shall request a new MB opinion should there be any increase in the loan amount in excess of LO%o, ora change in the mannerof acquisition of the project/s to be funded (i.e., whether for importation or local purchase) after an MB opinion has been issued; provided, that no release has been made of the term loan/credit line. The BGE shall likewise request for new MB opinion for the renewal of credit line/s. 7. BGEs that are unable to avail of their loan during the one (1) year validity period shall request for a new MB opinion on their proposed loan. They shall submit to the BSP the required documents and information under item 1 of Section lll of this Appendix. 8. BGEs need not request an MB opinion for a one-time short-term borrowing, but if the borrowing is a revolving credit line, the BGEs shall request said MB opinion.3 'Short-term borrowings refer to those with tenors of 90 days or less.

Appendix 57A lll. Required documents and information L' Request for MB opinion. To support the request for MB opinion, the BGE must submit the following documents/information to BSp: a. For GOCCs Letter from the Gocc requesting for MB opinion on its proposed roan (use the prescribed letter format attached as Annex 1A). The retter shourd contain information on the following: loan amounu name institution; for credit lineffacility: type, purpose and of lending date of expiry; for term loan: breakdown of specific project/s to be funded, cost and mode of acquisition (i.e., whether through importation or local purchase); interest rate; term/tenor; date of maturity; fees and other charges; rending institution's source of fund for the loan; and name/s of designated contact person/s responsibre for coordinating with the BSp arong with contact information. The letter should certify that no disbursement, partial amounts, has been made on the loan. in fuil or il. copy of the specific provision in the Gocc's charter or its equivarent for Gocc's without original charters (which may pertain to the Gocc,s Articles of Incorporation duly registered with the securities and Exchange commission), indicating its authority to borrow, including the borrowing limit, if any. iii. Board Resolution approving the proposed loan, its purpose, terms and conditions (pro-forma Board Resolution attached ' corporate secretary's certificate on the corresponding .r' ani", ze) o,. Board Resolution (pro-forma corporate secretary's certificate attached as Annex 34). iv. Department of Finance (DoF) comments on the proposed roan. v. Endorsement/crearance of the proposed roan by the head of the rine department or government agency with oversight functions over the borrowing entity, as applicable. vi' Information on outstanding loans (use the prescribed form attached as Annex 4A). b. For LWDs i. Letter from the LWD requesting for MB opinion on the proposed roan (use the prescribed retter format attached as Annex 1A). The retter shourd contain information on the foltowing: lo.n .,oorr,q rending institutiory

Appendix 57A purpose with breakdown of specific project/s to be funded, cost, and manner of acquisition (i.e., whether through importation or local purchase); interest rate; term/tenor; fees and other charges; lending institution's source of fund for the loan; name/s of designated contact person/s responsible for coordinating with the BSp along with contact information. The letter should certify that no disbursement, in full or partial amounts, has been made on the loan. ii. Board Resolution approving the proposed loan, its purpose and terms and conditions (pro-forma Board Resolution attached as Annex 2A) or corporate secretary's certificate on the corresponding Board Resolution (pro-forma corporate secretary's certificate attached as Annex 34). ilt. Endorsement/clearance of the proposed loan from the Local Water Utilities Administration (LWUA). tv. lnformation on outstanding loans (use the prescribed form attached as Annex 4A). c. For SUCs Letter from the sUC requesting for MB opinion on the proposed loan (use the prescribed letter format attached as Annex 1A). The letter should contain information on the following: loan amount; lending institution; purpose with breakdown of specific project/s to be funded, cost, and manner of acquisition (i.e., whether through importation or local purchase); interest rate; term/tenor; fees and other charges; lending institution's source of fund for the loan; name/s of designated contact person/s responsible for coordinating with the BSp along with contact information. The letter should certify that no disbursement, in full or partial amounts, has been made on the loan. Board Resolution approving the proposed loan, its purpose and terms and conditions (pro-forma Board Resolution attached as Annex 24) or corporate secretary's certificate on the corresponding Board Resolution (pro-forma corporate secretary's certificate attached as Annex 3A). il1. Endorsement/clearance of the proposed borrowing from the commission on Higher Education (CHEd). tv. lnformation on outstanding loans (use the prescribed form attached as Annex 4A).

Appendix 57A The BSP may request for additional documents and information from the BGE or the lending institution, as may be deemed necessary, to support the request for MB opinion. BGEs requesting for MB opinion on proposed borrowings to be obtained from lending institutions other than BSP-supervised financial institutions submit to BSp a written request accompanied by (BSFls), shall documents/information enumerated above. the required 2' Release of loan proceeds. The lending institution shall require the submission of the MB opinion on monetary and BoP implications prior to the release of the loan proceeds or the release of the first tranche, in case of loans with multiple tranches. lV. Repoftorialrequirements 1' Post-Borrowine Report (PBR). The BGE shall submit to BSp, through registered mail addressed to the Director, Department of Economic Research or through electronic mail addressed to [email protected], a post_borrowing r."port that will indicate, among others, the actual amount of the loan availed as well as the final terms and conditions thereof within 30 calendar days from the date of the futi release of the loan proceeds or final availment of the credit facilitf (use the prescribed form attached as Annex 5A). 2' Post-Loan Release Reoort (PLRR). The lending institutions shall submit through a letter addressed to the Director, Department to BSp, of Economic Research or through electronic mail addressed to mbopinion [email protected], a semestral post_ loan release report on Gocc/LwD/suc loans grrnied in full within the last six months that will indicate the actual amount of loan released as well as the final terms and conditions thereof, within 30 calendar days after the end of each semester (use the prescribed form attached as Annex 64). 3. The BSFts shall submit, through a letter addressed to the .ppropri.te department of the sEg within fifteen (15) banking days after every semester, a duly notarized certification on loan releases to BGEs signed by the president or an officer of equivalent rank and the chief compliance officer. such certification shall be considered as a category A-2 report for purposes of imposing fines on the delayed submission of required reports pursuant to existing regulations. (use the prescribed form attached as Annex 7A).

Annex 1A (Name of GOCC/LWD/SUC) (Complete address) (Contact number/s: telephone and facsimile) Date: The Governor Bangko Sentral ng Pilipinas A. Mabini cor. P. Ocampo Streets, Malate Manila, Philippines 1004 GOCC/rWD/SUC REQUEST FOR MONETARY BOARD (MBl OptNtON Dear Governor: Pursuant to Section I23 ol Republic Act No. 7653 (The New Central Bank Act), may we request for the opinion of the Monetary Board (MB) on the monetary and balance of payments implications of our proposed loan, details of which are provided below. For line/s of credit: Details of propos-d toant a. Name of lending institution b. Totalloan amount (in Php million) c. Type of credit line/s Pleose provide details: Facility 1: (Tvpe of credit facilitv) (Amount in php million) (Purpose) Facility 1: (Tvpe of credit facilitv) (Amount in php million) (Purpose) d. lnterest rate (in percent per annum) Please indicote if fixed or flootino e. Term/tenor (in no. of years) f. Availability and expiry dates g. Repayment terms and conditions h. Lending institution's source of fund for the toan " lnformation for items (d)to (g)should be validated wi0 the tendi"tfitinttit,,ti,rt

For term loon/s: Details of proposed loan b. Total loan amount (in php m Pleose provide breokdown of specific projects, ingl.uding cost and mode ol acquisition:21 Project 1: (Proiect title/details) (Cost in php million) {Mode of acquisition) Project 2: (Proiect title/details) (Cost in php million) (Mode of acquisitionl e. Term/tenor (in no. of years) institution's source of tunO toittrilan " Information for items (Oi '/ For mode of acquisition, please indicate whether for importation -or local purchase; of heavy equipment, please provide list of eouiompnt for acquisition For bond flotation: e. Purpose/s Pteose provide oreo*a@ f. Interest rate (in k. Borrowing capacity (in pno mittion Page 2 of4

Relative to this, we would like to certify that no disbursement, in part or in full, has been made on the proposed loan. Please find attached documents and information in support of our request, as follows: For GOCCs: 1. Board Resolution approving the proposed loan, its purpose, terms and conditions (Annex 2A.Pro-forma Board Resolution) or Corporate Secretary's certificate on the corresponding Board Resolution (Annex 34.Pro-forma Corp Sec certificate); 2. Data on the year-to-date outstanding borrowings (Annex 44.pro-forma report on outstanding loans); 3. Department of Finance (DoF) comments on the proposed loan; and 4. Endorsement/clearance of the proposed loan by the head of the line department or government agency with oversight functions over the borrowing entity, as applicable. For LWDs: L. Board Resolution approving the proposed loan, its purpose, terms and conditions (Annex 2A.Pro-forma Board Resolution) or Corporate Secretary's certificate on the corresponding Board Resolution (Annex 3A.pro-forma Corp Sec certificate); 2. Data on the year-to-date outstanding borrowings (Annex 4A.Pro-forma report on outstanding loans); and 3. Local Water Utilities Administration (LWUA) endorsement/clearance of the proposed loan. For SUCs: L.Board Resolution approving the proposed loan, its purpose, terms and conditions (Annex 2A.Pro-forma Board Resolution) or Corporate Secretary's certificate on the corresponding Board Resolution (Annex 3A.pro-forma corp sec certificate); 2. Data on the year-to-date outstanding borrowings (Annex 4A.Pro-forma report on outstanding loans); and 3. Commission on Higher Education (CHEd) endorsement/clearance of the proposed loan. Page 3 of4

Also, please find below the name/s and details of our designated contact person/s whom you may coordinate with relative to this request for MB opinion: L. (Name); (telephone '-csimile abile nos.); and (email address); ... Very truly yours, Name and signature Head of GOCC/LWD/SUC Name and signature Lending institution's authorized representativel 'The signature of the lending institution's authorized representative is required only for loan availments.

Annex 2A Form No. BOARD MEM BERS' RESOTUTION WE: of legal age, after first being duly sworn in accordance with law, hereby depose and state: That we are the members of the Board of Directors of with office and principal place of business at That in a special meeting of the said Board of Directors of the aforesaid office held at on at which majority of the directors were present and acted throughout, the following resolution was unanimously passed and approved: RESOLUTION NO. XXX Series of 20XX 'RESOLVED, that the (borrowins) with the (lendine institution) is hereby APPROVED under the following terms and conditions: Facility: Amount: Purpose: Term: Interest rate: Repayment terms: Security: Availability/expiry date: (other items in the list of terms and conditions) "RESOLVED, FURTHER, that the authority of the President and CEO to sign, countersign, execute and deliver any and all documents or papers necessary in order to effect the renewal of the aforesaid credit line be, as it hereby AppRovED." WE HEREBY CERTIFY that the above-quoted Board Resolution, a certified true copy of which is attached, is existing and has not been amended in whole or in part.1 t This sworn statement/certification executed by the approving members of the board should have exactly the same provisions as the actual Board Resolution. The said sworn statement is not necessarv if a

Annex 2A lN wlrNEss WHEREOF, wE have hereunto set our hands this day of 20XX, in Philippines. (MEMBERS', NAMES AND STGNATURES OF APPROVAL) -- SUBSCRIBED AND SWORN to before me this day of _, 2OXX, affiant exhibiting to me their Community Tax Certificate: Member's Name CTC No. Date issued: place lssued: Notary Public Doc. No. _ Page No. _ Book No. _ Series of _ copy of the actual Board Resolution could be submitted which shows the orisinal signatures of approval of the majority of the board members. ln any case, the document submitted should explicitly authorize the borrowing transaction. lt should likewise declare the particular purpose/s and respective costs involved, presenting these within the main body of the text of the document (not as attachments thereto) together with the other items of the terms and conditions.

Annex 34 Form lrlo. CORPORATE SECRETARYS' CERTI FICATE of legal age, after first being duly sworn in accordance with law, hereby depose and state: That in a special meeting of the said Board of Directors of the aforesaid corporation /office held at on majority of the directors were present and acted throughout, at which the following resolution was passed and approved unanimously/by a majority: RESOLUTION NO. XXX Series of 20XX 'RESOLVED, that the (borrowine) with the (lendine institution) is hereby APPROVED under the following terms and conditions: Facility: Amount: Purpose: Term: Interest rate: Repayment terms: Security: Availability/Expiry date : (other items in the list of terms and conditions) "RESoLVED, FURTHER, that the authority of the president and CEo to sign, countersign, execute and deliver any and all documents or papers necessary in order to effect the renewal of the aforesaid credit line be, as it hereby AppRovED." I HEREBY CERTIFY that the above-quoted Board Resolution, a certified true copy of which is attached, is existing and has not been amended in whole or in part.l ' This certification executed should have exactly the same provisions as the actual Board Resolution. is not necessarv if a copy of the actual Board Resolution This could be submitted which shows the original signatures of approval of the majority of the board members. ln any case, the document submitted should explicitly authorize the borrowing transaction. lt should likewise decrare the particular purpose/s and

Annex 34 (NAME OF SECRETARY, STGNATURE AND DATE) lN wlrNEss WHEREOF, I have hereunto set my hand this day of 20XX, in , philippines. (NAME OF CHAIRMAN/PRESIDENI SIGNATURE OF APPROVAL AND DATE) SUBSCRTBED AND SWORN to before me this day of _ ,20XX, affiant exhibiting to me their community Tax certificate: secretary's Name crc No. Date issued: place rssued: Notary Public Doc. No. _ Page No. _ Book No. _ Series of respective costs involved, presenting these within the main body of the text of the document (not as attachments thereto) together with the other items of the terms and conditions. Page2 of 2

Annex 4A Please attach accomplished form in the letter of request for Monetary Board (MB) opinion on borrowing government entity's proposed loan. (Name of GOCC/LWD/SUCI LIST OF OUTSTANDTNG TOANS AS OF (dd/mm/wwl Lending Loan Loan Date of Amount released to For loans with MB institution amount purpose first date (in Php million), opinion rendered, (in Php release indicate if "partial' or indicate Resolution million) "full" release no. and date For loans thot hove been fully releosed, please ottoch Post-Borrowing Report (use as temptate Annex 5A, Appendix 57A, of Circulor No. 926, s. 2016). Certified true and correct: Name and signature of Head of GOCC/LWD/SUC

Annex 5A For submission to the BSp, through registered mail to tne Director, Department of Economic Research, Bangro Sentral ng Pilipinas, A. Mabini St. cor. p. Ocamoo St. Malate, Manila, 1004, or by electronic mail to mbopinion der(o bso.eov.ph POST BORROWING REPORT Name of Borrower Monetary Board Resolution No. Date of Monetary Board Opinion Amount of Proposed Loan Lending Institution Final Terms and Conditions Name of Facility Actual Amount of Loan* Purpose Interest Rate (Actual) lf floating, please indicate base and spread Avail ment/Drawdown date* Term (ln Years) Maturity Date Grace Period Interest Payment ( Freq uency/Date) Princi pal Payment (Frequency/Date) National Government Guarantee Collateral Guarantee/Security Breakdown of fees and other related costs Other relevant terms and conditions * Please indicate if on a staggered basis

Annex 64 For submission to the BSP, through registered mail to the Director, Department of Economic Research, Bangro Sentral ng Pilipinas, A. Mabini St. cor. p. Ocampo St. Malate, Manila, 1004, or by electronic mail to mbopinion [email protected] POST.IOAN RELEASE REPORT ON TOANS Name of BSFt/lencJing institution: Period covered, for the six months ending @ A. Loans granted in full for the semester Shou|dat|eastincludeinformationonthematurityuate,iffi B. Past-due loans for the semester (1) (21 (3) (4) (s) (6) Total no. of borrowing GOCCs/WDs/SUCs Loan Amount Loan Maturity Interest Rate Mode of government entities with delayed (Years) Payment (BGEs) with payment due payment

Annex 7A Deadline: 15 banking days after end of reference semester SWORN CERTIFICATION ON TENDINGS TO BORROWING GOVERNMENT ENTITIES (Name of BSF|) Pursuant to the requirements under circular No.- dated -_-- , w€ hereby certifyl that for the 6-month period ending < state reportinq semester>: tr There were no loans released to borrowing government entities (BGEs) by <Nome of BSFI> n <Name of BSF|> had released loans to BGEs and that _ f, EXCEPT for loans in the attached list, loans released to BGEs were covered with Monetary Board opinions on the borrowings, probabre effects on monetary aggregates, the price rever and tne balance of payments, pursuant to section 123 0f Republic Act (R.A.) No. 76s3, otherwise known as "The New centrar Bank Act,, tr ALL loans released to BGEs were covered with Monetary Board opinions on the borrowings' probabre effects on monetary aggregates, the price level and the balance of payments, pursuant to Section L23 of R.A. No. 7053. To the best of our knowledge, the foregoing statements are true and correct. President or Officer of Equivalent Rank Ch ief Compliance Officer TIN: TIN: Com. Tax Cert. No.: Com. Tax Cert. No.: lssued on: lssued on: lssued at: lssued at: SUBSCRIBED AND SWORN to before me, on this _ day of _, ot exhibiting their respective Community Tax Certificate as indicated above. NOTARY PUBLIC Doc. No. _; Page No. _; Book No. _; Series of 'Check appropriate box

Annex 7A TOANS RETEASED TO BGEs WITHOUT THE REQUISITE MB OPtN|ON (Nome of BSFI) BGE Amount Date of J ustifications/expla nations for Released Release the loan release without the requisite MB Opinion