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(NAR) VOL. 10 NO. 3 / JULY - SEPTEMBER 1999
[ BSP CIRCULAR NO. 1229, February 19, 1990 ]
REDISCOUNTING OF ELIGIBLE PAPER UNDER THE REDISCOUNT WINDOW
The Monetary Board, in its Resolution No. 151 dated February 9, 1990 approved the following amendments to the provisions of Books I - III of the Manual of Regulations for Banks and Other Financial Intermediaries governing the rediscounting of eligible paper under the rediscount window:
SECTION 1. Subsection 1271.1 (Book I), 2271.1 (Book II) and 3271.1 (Book III) of the Manual of Regulations are hereby amended to read as follows:
“Loan, Value, Rediscount, and Lending Rates — The loan value and rediscount rate for the rediscount facility of the Central Bank shall be as follows:
“The lending rates that the banks may charge on their rediscounted papers shall not be subject to any ceiling. However, the spreads made by banks shall be closely monitored periodically by the Central Bank to ensure that these are consistent with the prevailing market rate.”
Provisions of existing Circulars inconsistent with the above are deemed superseded.
This Circular shall take effect immediately.
Adopted: 19 Feb. 1990
(SGD.) JOSE B. FERNANDEZ, JR.
Governor
SECTION 1. Subsection 1271.1 (Book I), 2271.1 (Book II) and 3271.1 (Book III) of the Manual of Regulations are hereby amended to read as follows:
“Loan, Value, Rediscount, and Lending Rates — The loan value and rediscount rate for the rediscount facility of the Central Bank shall be as follows:
| Eligible Papers | Loan Value (In %) | Rediscount Rate (In % p.a.) |
| Agricultural Production, | ||
| Cottage and Small | ||
| Industries Credits, | ||
| General Purpose | ||
| Working Capital | ||
| Financing and Other | ||
| Short-Term Credits | 80 | 13.0 |
“The lending rates that the banks may charge on their rediscounted papers shall not be subject to any ceiling. However, the spreads made by banks shall be closely monitored periodically by the Central Bank to ensure that these are consistent with the prevailing market rate.”
Provisions of existing Circulars inconsistent with the above are deemed superseded.
This Circular shall take effect immediately.
Adopted: 19 Feb. 1990
Governor