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OFFICE OF THE GOVERNOR
Bangko Sentral ng Pilipinas
Circular No. 374
Series of 2003
Pursuant to Monetary Board Resolution No. 284 dated 27 February 2003,
the implementing rules and regulations of Section 9 and the second Paragraph
of Section 13 of R.A. No. 9178, otherwise known as the "Barangay Micro
Business Enterprises (BMBEs) Act of 2002" are hereby issued as follows:
Section 1. Credit Delivery Pursuant to the provisions of Section 9 of
R.A. 9178, the Land Bank of the Philippines (LBP), the Development Bank of
the Philippines (DBP), the Small Business Guarantee and Finance Corporation
(SBGFC), and the Peoples Credit and Finance Corporation (PCFC) shall set
up a special credit window that will service the financing needs of duly registered
BMBEs consistent with BSP policies, rules and regulations. Said special
credit window shall service the credit needs of BMBEs either through retail or
wholesale lending, or both, as the concerned financial institutions may deem
consistent with their corporate policies and objectives. The Government Service
Insurance System (GSIS) and the Social Security System (SSS) shall likewise
set up special credit window that will serve the financing needs of their respective
members who may wish to establish a BMBE.
Said financial institutions are encouraged to wholesale funds to accredited
private financial institutions including community based organizations such
as cooperatives, non-government organizations (NGOs) and people's
organizations engaged in granting credit, for relending to BMBEs.
Private banking and other financial institutions are hereby encouraged to
lend to BMBEs.
Section 2. Interest on loans to BMBEs Interest on BMBE loans shall
be just and reasonable as may be determined by management of the concerned
entity to be consistent with its credit policies.
Section 3. Amortization of loans to BMBEs The schedule of loan
amortization shall take into consideration the projected cash flow of the
borrowers. Thus, loans granted to BMBEs may, at the discretion of the lender,
be amortized daily, weekly, monthly or at such interval as the conditions of the
business of the BMBEs may warrant.
Section 4. Waiver of Documentary Requirements - Banks and other
financial institutions shall not require from duly registered BMBE borrowers
the submission of income tax returns as a condition to the grant of loans