PSE Circular for Brokers No. 2052-99
PSE Circular for Brokers No. 2052-99 • Philippine Stock Exchange • Circulars for Brokers • Aug 18, 1999
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August 18, 1999 PSE CIRCULAR FOR BROKERS NO. 2052-99 August 17, 1999 MS. GRACE B. DE GUIA Asst. Manager, Disclosure Department The Philippine Stock Exchange, Inc. 4/F PSE Centre, Exchange Road Ortigas Center, Pasig City RE : Clarification of "TODAY" article Dear Ms. De Guia: We wish to confirm that Megaworld Properties & Holdings Inc. has an original loan from the Government Service and Insurance System of P200 Million. aisadc Based on our computation, the outstanding balance of said loan is approximately P120 Million. However, based on GSIS' computation, the outstanding balance of said loan is P378 Million as of May 31, 1999, which amount allegedly includes principal, penalties, surcharges, and interest. We find GSIS' computation erroneous because, following GSIS computation, after only nine months, the penalties and surcharges ballooned to P378 Million. This translates into an effective interest rate of 371% annually, which is very onerous. On the other hand, our computation of Megaworld's outstanding obligation is only P120 Million, which we are willing to settle immediately with GSIS. Thank you. Very truly yours, (SGD.) FRANCISCO C. CANUTO Duly Authorized Signatory
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