Question & AnswerQ&A (CIRCULAR NO. 985)
The temporary window covers unregistered private sector foreign loans/borrowings obtained without prior approval from the BSP that are outstanding and recorded in the borrower's records as of the Circular's effectivity date. It is available for six months starting January 15, 2018.
Private sector borrowers who obtained foreign loans/borrowings without public sector guarantee and without prior BSP approval are covered under the temporary registration window.
The loans/borrowings must have been used for legitimate projects, programs, or purposes that are not contrary to laws, regulations, public order, public health, public safety, or public policy.
Borrowers must submit a duly accomplished Application for Registration of Private Sector Foreign Loans/Borrowings (Annex A) to the BSP through the International Operations Department, together with required documents and proof of payment of the PHP20,000 registration fee.
A fixed fee of PHP20,000, payable by Manager's Check or Cashier's Check upon filing the application.
FX selling approved agent banks (AABs) must report using Schedule 4 of FX Form 1, and AAB forex corps report through the Report on Foreign Exchange Transactions within five banking days from the week-end. Borrowers must report medium and long-term borrowings using Form 2 Annex E.2 and short-term borrowings using ST-2 Annex E.1 within five banking days after the reference month.
Non-compliance can lead to cancellation of the Bangko Sentral Registration Document (BSRD), rendering the loan ineligible for servicing using FX resources of AABs or AAB forex corps.
The Circular took effect on January 15, 2018.
Foreign loans/borrowings are those owed by residents to non-residents, regardless of the currency denomination.