Monetary authorities have approved the further relaxation of the rules on documentation of foreign loans and other obligations.
In a statement on Friday, the Bangko Sentral ng Pilipinas (BSP) announced that its policy-making body Monetary Board has lifted the prohibition on notarization of documents covering foreign loans.
Also lifted were notarization of documents for deferred payment and other foreign or foreign currency denominated obligations of the private sector.
Previously, such documents were prohibited from being notarized, the BSP noted.
“The move is part of continuing efforts to have an appropriate regulatory framework for foreign exchange transactions,” BSP Governor Amando Tetangco Jr., said.
The BSP said change in policy would cover purely private sector accounts (that is, those without guarantee or foreign exchange exposure on the part of the government financial institutions and/or government owned/controlled entities) that are submitted to the BSP for approval and/or registration.
The relaxed rules thus provide the private sector greater flexibility with respect to documentation of their financing agreements to meet specific requirements of creditors and/or foreign laws that may govern such transactions, it added.