Amendments to the guidelines on the BSP Rediscounting Facility

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Office of the Governor

CIRCULAR NO.648

Series of 2009

Bangko Sentral ng Pilipinas (BSP) Rediscounting Facility are hereby February 2009, the provisions of Subsections (S) X268.3, X269.2, X269.4 and X269.6 of the Manual of Regulations for Banks, covering the guidelines on the amended as follows: Pursuant to Monetary Board (M.B.) Resolution No. 246 dated 12

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S X268.3 Approval/Renewal of the Line. The approvai/renewal of the Line shall be subject to the bank's full compliance with the following requirements:

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d. NPL ratio lower or equal to the industry average adjusted SDC, or the allowable NPL ratio approved by the MB; upward by ten percent based on the latest available report of the

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the foilowing: Banks with approved rediscounting line shall, thereafter, submit

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b. Item b is deleted

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instruments covering all economic activities except the following: S X269.2 Eligible Papers and Collaterals. The BSP shall accept credit

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immediately before Item b to read as follows: The following paragraph is hereby added after Item a.(2) and

limit (25% of its net worth) or P3 billion, whichever is lower. rediscount shall not exceed the rediscounting bank's single borrower's The outstanding National Food Authority papers that a bank can

PANANALAPING MAtAtAG, BANSANG PANAtAG

A. Mabini St., Malate 1004, Manila, Philippines Trunkline (632) 524-70-11 URL.:www.bsp.gov.ph e-mail: [email protected]

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S X269.4 Loan Value. The loan value of all eligible papers shall be 90% of the outstanding balance of the borrower's credit instrument but not higher than 70% of the appraised value of the underlying collateral.

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S X269.6 Rediscount/Lending Rates and Liquidated Damages. The rediscount rates for peso, dollar and yen loans shall be as follows:

a. Peso Rediscounts Based on the applicable BSP (RRP) rates less 50 basis points overnightreverserepurchase

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Effectivity. This Circular shail take effect on 02 March 2009

FOR THE MONETARY BOARD

Amando m. tetangco, Jr. AMM Governor

2 March 2009