Treatment of Securities Offered and Accepted in Tender Offers Pursuant to Liability Management Transactions of the Republic of the Philippines

October 11, 2011BSP CIRCULAR NO. 738-11SUBJECT:Treatment of Securities Offered and Accepted in Tender Offers Pursuant to Liability Management Transactions of the Republic of the Philippines The Monetary Board, in its Resolution No. 1147 dated 29 July 2011, approved the following guidelines on the treatment of securities held by banks and other BSP-supervised financial institutions participating in tender offers pursuant to liability management transactions of the Republic of the Philippines for prudential reporting purposes. Item "g" of Section 4 on Reclassification under Appendix 33 of the Manual of Regulations for Banks and Appendix Q-20 of the Manual of Regulations for Non-Bank Financial Institutions, is hereby amended to read as follows:"g. The following securities booked under the HTM category, shall be exempted from the "tainting" provision for prudential reporting purposes which prohibits banks/FIs from using the HTM category and requires reclassification of the entire HTM portfolio to the Available-for-Sale category during the reporting year and for the succeeding two (2) full financial years whenever a bank/FI sells or reclassifies more than an insignificant amount of HTM investments...