09.11.2012 In line with the responsibility of the Bangko Sentral ng Pilipinas (BSP) to manage the impact of capital flows on the economy, resident entities intending to borrow from offshore sources (such as banks, multilateral financial institutions, foreign parent companies/affiliates/shareholders, among others), including those in the form of issuances of bonds/notes offshore, are required to submit their foreign borrowings plan (FBP) for the ensuing year to the BSP, through the International Operations Department (IOD) not later than 30 September of the year prior to the actual borrowing. The policy is stated in Section 22 of the Manual of Regulations on Foreign Exchange Transactions (the FX Manual) issued under BSP Circular No. 645 dated 13 February 2009, as amended.
The BSP clarified that for the private sector, the requirement applies whenever foreign borrowings for the following year will aggregate at least US$10 million or its equivalent in other foreign currencies, although those who are contemplating on borrowing smaller amounts are likewise encouraged to report their plans. For the public sector, all contemplated foreign borrowings must be submitted, regardless of amount.
The survey is an annual exercise done by the IOD to obtain an indication of the magnitude and timing of the economy’s foreign financing requirements for the following year, as well as the beneficiary sectors/projects/activities of such fund raising activities. Information gathered from the survey are held under strict confidentiality rules and used in preparing projections on capital flows and assessing their implications.
Enterprises are, therefore, reminded that for borrowings to be obtained in 2013, their FBP must be submitted to the IOD on or before 30 September 2012 using the standard forms which may be downloaded from the BSP website at http://www.bsp.gov.ph/regulations/reg others.asp. The cooperation of all concerned in complying with aforesaid requirement is, therefore, enjoined.
|
