FOR : All BLGF Regional Directors, Provincial, City, Municipal Treasurers and Others Concerned
SUBJECT : Guidelines on the Issuance of the Certificate of Net Debt Service Ceiling (NDSC) and Net Borrowing Capacity (NBC) to Local Government Units (LGUs) and on the Timely Monitoring and Reporting of LGU Loans and Borrowings
This Memorandum Circular issued to set the operational guidelings of the Central and Regional Offices of the Bureau of Local Government Finance (BLGF) in the processing of requests of local government units (LGUs) for the issuance of the Certificate of Net Debt Service Ceiling and Net Borrowing Capacity (“Certificate”) for all loans and borrowings of LGUs, pursuant to Department of Finance (DOF) local Finance Circular (LFC) No. 1-2012 and Bangko Sentral ng Pilipinas (BSP) Circular No. 769 s. 2012
I. POLICY AND OBJECTIVES
It is the goal of the BLGF to facilitate, expedite and render efficient service standards to all LGUs requesting for certification on NDSC and NBC, across all levels and in any geographical jurisdiction. The service standards must ensure efficiency in procedural requirements and enforcement, establish accurate and proper evaluation mechanisms at central and regional level, and render timely reporting and monitoring of LGU loans and borrowings.
To attain the above objectives, it is hereby established as the policy of the Bureau to devolve the validation of the documentary requirements of provincial, city, municipal and barangay applications to the BLGF Regional Offices, build the capacity of concerned units and personnel in the proper monitoring of LGU loans and borrowings, and establish quarterly information release to the public on LGU loans and borrowings, which shall include the magnitude, trends and patterns of loans and borrowings and the analysis on the number of certificates issued by level, type, and purpose of the loans and borrowings on a quarterly and annual basis.