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iii. By the creditor foreign bank – Report on Short-Term Loans Granted

to Residents by Foreign Banks (Annex F).

6. Short-term loans of private exporters/importers from other offshore

sources/creditors: Provided, That all provisions of Section 24.5 are complied with,
except item (f), and that the loans shall be granted against BSP-approved short-term
relending programs of foreign creditors. Creditors shall submit to the BSP for approval
their short-term relending program for Philippine borrowers indicating their proposed
credit limit together with a list of prospective borrowers/beneficiaries. These relending
programs shall be valid for one (1) year.

7. Private sector loans not guaranteed by foreign governments/official export

credit agencies covering importation of freely importable commodities under deferred
L/Cs or D/A-O/A arrangements with a term of more than one (1) year.

8. Private sector intercompany loans granted by foreign companies to their

local branches/subsidiaries, irrespective of amount and maturity: Provided, That these
are used to finance eligible projects/costs cited under Section 25. For purposes of this
Item, intercompany loans shall include those granted by foreign branches and
wholly-owned subsidiaries of a foreign parent company as well as other subsidiaries of
the parent company but shall exclude those loans that are intended to refinance
existing obligations: Provided, That, in the case of other subsidiaries, the loan/s shall be
fully guaranteed by the parent company.

9. Loans of resident private sector borrowers from offshore sources that are
not guaranteed by public sector entities to finance the Government’s Public-Private
Partnership (PPP) projects. These loans may be obtained without prior BSP approval
until 28 December 2016. However, if financing for the PPP projects will be in the form
of offshore issuances of peso-denominated instruments, the provisions of Section 31.2
shall apply.

The loans listed under this Section shall, however, be registered with the BSP
pursuant to Section 28, if to be serviced by the borrower/creditor/guarantor using
foreign exchange from AABs/AAB-forex corps, including loans that are covered by
derivatives contracts which shall also be subject to the provisions of Sections 88 to 94
and Appendix 18 of the Manual. Said registration requirement does not apply to loans
under items 1(a)-(c) and 2 hereof, while loans covered by items 4 and 5 shall be subject
to the provisions of Section 28.3.

(As amended by Circular No. 742 dated 21 November 2011, Circular No. 794
dated 18 April 2013, Circular No. 818 dated 6 November 2013, Circular No. 874 dated
8 April 2015 and Circular No. 925 dated 13 September 2016)

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