Mechanics for Registration
- Loans/borrowings must have been utilized for legitimate projects or purposes not contrary to existing laws, public order, health, safety, or policy.
- Borrowers must submit an Application for Registration of Private Sector Foreign Loans/Borrowings to BSP’s International Operations Department within six months.
- Required documents and proof of registration fee payment must accompany the application.
- BSP issues a Bangko Sentral Registration Document (BSRD) upon approval.
- BSRD must be presented with other documentary requirements for authorized foreign exchange transactions to service the loan without prior BSP approval.
Registration Fee
- Fixed registration fee of PHP 20,000 is required.
- Fee must be paid to BSP using Manager’s Check or Cashier’s Check upon submission of the registration application.
Reporting Requirements
- Authorized agent banks (AABs), AAB forex corporations, and private borrowers have specific reporting obligations to BSP:
- FX selling institutions must report FX sales within 5 banking days after the reference week via established FX Forms.
- Private borrowers must file monthly reports on medium/long-term and short-term foreign borrowings within 5 banking days after the reference month.
- Failure to comply with registration or reporting conditions can lead to cancellation of the BSRD.
- Cancellation renders the loan ineligible for servicing through authorized foreign exchange resources.
Effectivity
- The guidelines and temporary registration window take effect on January 15, 2018.
Definitions and Important Legal Concepts
- Foreign loans/borrowings refer to obligations owed by residents to non-residents regardless of currency.
- The BSP exercises regulatory oversight over foreign loans to ensure compliance with Philippine laws and foreign exchange regulations.