Congress asked to clarify Bangsamoro loan powers

by Jay Ruiz, ABS-CBN News

Posted at Oct 07 2014 04:04 PM | Updated as of Oct 08 2014 12:04 AM

MANILA - The Bangko Sentral ng Pilipinas (BSP) wants lawmakers to clarify the provisions in the draft Bangsamoro Basic Law with regard to the powers of the Bangsamoro to borrow money.

During the third ad hoc committee meeting on the BBL at the House of Representatives, BSP general counsel Elmore Capule raised concerns on the authority of the Bangsamoro to acquire loans.

He said that if loans are made locally, then the Bangsamoro can freely do so. Borrowing abroad, on the other hand, will require approval from the BSP to determine if this has a sovereign guarantee, he added.

Aside from this, Capule said Congress should also clarify the powers of the Bangsamoro over banks that are in their area of responsibility.

He said that this needs to be in accordance with the Constitution, which gives exclusive powers to the BSP in supervising all banks in the country.