(NAR) VOL. 5 NO. 4 / OCTOBER - DECEMBER 1994
"Loan Value, Rediscount and Lending Rates. — The loan value and rediscount rate for the rediscount facility of the Bangko Sentral shall be as follows:
Eligible Papers Loan Rediscount Rate Value
(In % p.a)Agricultural Production, Cottage and Small Industries Credits, General Purpose Working Capital Financing and Other Short-term Credits 80%One (1) Percentage Point Below 91-Day Treasury Bill Rate to be Revised every Three (3) Months
Provided that the loan value for export credits shall be 100 percent.
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 subject to closer monitoring by the Bangko Sentral to ensure that these are consistent with the prevailing market rates."
Provisions of existing Circulars inconsistent with the above are deemed superseded.
This Circular shall take effect immediately.
Adopted: 8 Nov. 1994
(Sgd.) EDGARDO P. ZIALCITA
Officer-in-Charge