QuestionsQuestions (BSP CIRCULAR LETTER S. 1992)
Its purpose is to instruct banks to include specific accounting codes in the relevant schedules of IOS Form 1 so that the repayment of FCDU loans to exporters under Circular 1317 can be effectively monitored.
The Circular Letter refers to Schedules 4 and 8 of IOS Form 1: Schedule 4 for “CODES FOR INVISIBLE ACQUISITIONS” and Schedule 8 for “CODES FOR INVISIBLE DISPOSITIONS.”
Code A1.4.09.0 for Intermediaries Income on FCDU Loans to Exporters, and Code A1.7.31.0 for Settlement of Principal—FCDU Loans to Exporters.
Code D1.4.09.0 for Interest payments on FCDU Loans to Exporters, and Code D1.7.24.0 for Settlement of Principal—FCDU Loans to Exporters.
It covers intermediaries’ income on FCDU loans to exporters.
It represents the settlement (repayment) of principal for FCDU loans to exporters.
It represents interest payments on FCDU loans to exporters.
It represents the settlement (repayment) of principal for FCDU loans to exporters.
Principal repayment is covered by A1.7.31.0 (acquisition) and D1.7.24.0 (disposition), while interest payments are covered by D1.4.09.0 (disposition). Intermediaries’ income on loans is separately identified as A1.4.09.0 (acquisition).
The categorization reflects different sides of the transaction reporting in IOS Form 1 (acquisitions vs. dispositions), even if both relate to the same underlying principal settlement.
It implies that covered institutions were expected to implement the code changes right away upon effectivity, without waiting for a future date.
It was signed by Edgarado P. Zialcita, Deputy Governor. In BSP issuances, the signatory is the authorized BSP official, giving the circular letter official and binding regulatory character for covered institutions.
Banks must include the specified accounts/codes in the “CODES FOR INVISIBLE ACQUISITIONS” (Schedule 4) and “CODES FOR INVISIBLE DISPOSITIONS” (Schedule 8) of IOS Form 1.
It indicates that the repayment being monitored and the reporting adjustments are specifically tied to the rules and framework for FCDU loans to exporters under Circular 1317.
The monitoring of repayment and related invisible transactions would be less accurate or noncompliant with BSP reporting instructions, potentially leading to regulatory findings for incorrect IOS reporting.