LBP offers new deposit instrument for OFWs
by Prix D Banzon
Davao City (13 February) -- The Philippine government is offering a new deposit product, known as the Long-Term Negotiable Certificates of Deposit (LTNCD) to more than 150 Filipino business leaders in Dubai.
The product initiated by the Land Bank of the Philippines (LBP) will serve as a deposit instrument for Overseas Filipinos and their relatives to ease the impact of the shrinking peso equivalent of their offshore earnings.
In a press statement Finance Secretary Margarito B. Teves said LTNCD is designed to help Filipinos abroad and their families participate in the government's savings mobilization program. It will also help soften the adverse impact of the sharp peso appreciation among OFWs as the LTNCD carries a higher yield compared to existing peso savings and time deposits.
The peso-denominated LTNCD will be issued in P20,000 denomination in five-and-1/2 and 10-yesr term. It is covered by PDIC insurance up to P250,000 per depositor, and is withholding tax-exempt if held up to maturity.
The instrument carries an indicative yield of 6.25 percent for a five-and ½-year term, and 6.88 percent if held to 10 years. The final interest rates, however, will depend on the prevailing market rates at the time of issuance.
The target launching of the LTNCD will be on March 2008 through a Public Offering to be advertised in major dailies. It will be available in all LandBank branches, HSBC and designated selling agents.
Investors will be required to present proof of overseas employment such as OWWA Card, Employment Contract, PDOS Certificates, etc. to avail of the LTNCD.
For OFW relatives who intend to invest, they should present proof of relationship with OFW such as marriage contract and birth certificate. (PIA) [top]