The Bangko Sentral ng Pilipinas is seeking amendments to its 1993 Charter, expecting a higher capital to address its operating losses and burden-sharing arrangement with the national government which gets 75 percent of central bank earnings.
In an interview with reporters Wednesday, Bangko Sentral Gov. Amando Tetangco Jr. said the plan was to polish the amendments in time for the 16th Congress which opens later this month.
“We are finalizing the amendments…We will be submitting this to the Congress after the SONA [State-of-the-Nation Address] of the President,” Tetangco noted.
He said the BSP has already found sponsors for the proposal and they were hopeful that it would be
There are already sponsors at the House of Representatives, and the Bangko Sentral is entertaining hope for an early approval. “I think it will be given to a committee,” according to the central bank chief who did not name the congressmen.
Asked to elaborate on amendments that would be introduced into the New Central Bank Act of 1993, particularly on the issues of capitalization, Tetangco said, “We cannot divulge that.”
Under its 1993 Charter, Bangko Sentral was given a P50-billion capital in staggard payments from the national coffers.
Last year, the central bank incurred a net loss of P95.4 billion—a record—from P33.7 billion a year earlier, mainly driven by its foreign exchange operations to stabilize the peso-dollar market as well as revaluation losses on its gold holdings. — VS, GMA News