CBP Circular Letter

July 28, 1981 CBP CIRCULAR LETTER TO : All Banks, Stock Exchanges, Securities Dealers and Stock Brokers We wish to inform that under Monetary Board Resolution No. 1073 dated 26 June 1981 implementing the provisions of Letter of Instructions No. 1134, a stock trading fund in the amount of P70 M shall be made available for relending to qualified securities dealers/stock brokers and investors in order to provide liquidity for secondary trading in "blue-chip" common and preferred shares listed in the stock exchanges. To enable as many investors as possible to avail of the fund and to ensure that proceeds thereof are used for the purpose intended, loans granted under the program shall not exceed P50,000.00 per borrower and release of proceeds shall be contingent, among others, upon presentation by the borrower of a confirmation of purchase of listed securities dated after the date of approval of the loan, together with a certification of the licensed broker, member of an operating stock exchange, to the effect that the shares shown in the confirmation were actually purchased. Since this special financing program to be undertaken by banks is now in operation, we are furnishing you herewith a copy each of Circular No. 807 dated 26 June 1981 as well as a list of companies whose shares of stocks are eligible for financing under the aforementioned program. The list of eligible shares of stock, however, shall be subject to periodic review and may be revised by the Central Bank of the Philippines in consultation with the Securities & Exchange Commission. For your information and guidance. (SGD.) EUGENIO NIERRAS, JR. Deputy Governor