GUIDELINES ON THE AVAILMENT OF US DOLLAR DENOMINATED
REPURCHASE AGREEMENT FACILITY WITH THE BANGKO SENTRAL
(Appendix to Sec. 601 on Repurchase Agreements with Bangko Sentral)
The guidelines on the availment of USD denominated repo agreement facility of banks with the Bangko Sentral are as follows:
A. Eligible borrowers
B. Qualifying purposes
1. Compliance with FCDU/EFCDU cover requirements;
2. Servicing of withdrawals of FCDU/EFCDU; and
3. Servicing trade-related requirements.
C. Acceptable collateral
D. Valuation of securities
E. Available credit line
F. Rate, term and trading time
G. Application requirements
1. Application for availment of the facility stating therein the amount, requested term, specific purpose of the borrowing, including disclosure of the specific collateral, including source, i.e. RBU or FCDU/EFCDU;
2. Notarized undertaking/certification signed by the bank’s president or country manager (in the case of local branch of a foreign bank), compliance officer and head of treasury, indicating the following:
(a) Specific purpose of fund utilization;
(b) Proceeds of borrowing shall be used exclusively to fund liquidity requirements of FCDU/EFCDU or RBU local operations;
(c) That the Bank is not a conduit for another bank nor will the Bank take arbitrage positions on the availment of the repo agreement facility.
H. Reportorial requirements
1. Report on the deployment/utilization of USD repo borrowing and other documents and supplemental information, as may be required, to enable Bangko Sentral to assess the legitimacy of the utilization of such funds, within three (3) banking days from release of the proceeds of the repo agreement; and
2. All documents and records relative to the Bank’s availment and use of proceeds of the USD denominated repo agreement facility shall be made available to the Bangko Sentral upon request.
1. The repo agreement may be paid at any time before maturity, subject to mutual agreement of both parties.
2. The Bangko Sentral may unilaterally pre-terminate the borrowing arrangements under the following conditions:
(a) Funds are found to have been used for ineligible purposes
(b) Collateral margins, if any, are not met.
K. Accounting treatment
L. Penalty clauses