Please be informed that the Monetary Board, in its Resolution No. 477 dated April 28, 1997, decided as follows:

"1.     To reduce from 70% to not more than 60% of the appraised value of the real estate security and the insured improvements the loan value of real estate given as security for any loan granted by a commercial bank;

2.       To direct commercial banks to observe an aggregate limit on real estate loans to not more than 20% of their respective total loan portfolio; and

3.       To give commercial banks whose total outstanding real estate loans exceeds 20% of total loan portfolio a period of one year within which to comply with the prescribed ratio."

Please be guided accordingly.

Adopted: 6 May 1997