Extension of Temporary Measures Implemented in the Bangko Sentral ng Pilipinas' (BSP) Rediscount Facilities and Acceptance of Additional Eligible Credit Instruments for Rediscounting Pursuant to Republic Act (RA) No. 11494

BANGKo Serurn.al ne PtutetNAs OFFICE OF THE GOVERNOR MEMORANDUM NO. M-202O-07 6 To : AllConcerned Banks Subject : Extension of Temporary Measures lmplemented in the Bangko Sentral ng Pilipinas' {BSPI Rediscount Facilities and Acceptance of Additional Eligible Credit Instruments for Rediscounting Pursuant to Republic Act {RA} No. 114941 The Monetary Board {MB), in its Resolution No. 1215 dated 24 September 2020, approved the further extension of the temporary measures implemented in the BSP's rediscount facilities2 until 31January 2021, subject to extension as may be approved by the MB, as follows: 1. Reduction of the term spread on Peso rediscounting loans relative to the BSP's overnight lending rate to zero, regardless of maturity {i.e. 1 to 180 days); 2. Reduction of the term spread on rediscounting loans under the Exporters' Dollar and Yen Rediscount Facility (EDYRF), thereby reducing the applicable United States Dollar (USD) and Japanese Yen (JPY) rediscount rates to the 90-day London Interbank Offered Rate, or in its absence, an applicable benchmark rate, such as the Secured Overnight Financing Rate, plus 200 basis points, regardless of maturity {i.e. 1- 36b days); and 3. Acceptance for rediscounting with the BSP under the EDYRF the USD- and JPY-denominated credit instruments related to the economic activities enumerated in Department of Trade and Industry Memorandum Circular No. 20-08 dated 20 March 2020, except for loans to banks and capital rnarkets; provided that, these credits are booked under the regular banking unit of the rediscounting bank and are compliant with the requirements on eligible papers and collaterals under Section 282 of the Manual of Regulations for Banks (MORB); provided fufther, that the said USD- and JPY-denominated credits are only to those end-user borrowers operating during the enhanced community ouarantine. Moreover, in the same Resolution, the MB approved the acceptance for rediscounting with the BSP of credit instruments compliant with the requirements on eligible papers and collaterals underSection 282of the MORB, which were granted one- time siny {50)-day grace period or longer as may be mutually agreed by the parties, pursuant to Section 4(uu) of the "Bayanihan to Recover as One Act" subject to the submission of certification signed by the authorized officer(s) of the bank stating that the maturities of said credit instruments were extended pursuant to RA No. 11494, until 31 January 2021, subject to further extension as may be approved by the MB' 1 Otherwise known as the "Bayanihan to Recover as One Act", signed into law by the President of the Philippines on 11 September 2020. 2 As previously contained in Memorandum Nos. M-2O2O-O43 dated 18 May 2020 and M-2020-055 dated 16 July 2O20.

In this regard, banks are expected to comply with the availment and submission procedures set forth under Memorandum Nos. M-2020-015 dated 31 March 2020, M-2O2O-O24 dated 08 April 202o, M-2020-051 dated 17 June 2020, and M-2020-056 dated 15 July 2020. Relatedly, we inform that the credit instruments, which were granted mandatory 30-day grace period pursuant to Memorandum No. M-202O-O77 dated 0l April 2020 and Section 4(aa) of RA No. 114693 and its lmplementing Rules and Regulations, shall be accepted for rediscounting with the BSP until 3O September 2O20 only. For strict compliance eq BENJA MIN E. DIOKNO Governor l$ Septemb er 2O2O 3 Otherwise known as the "Bayanihan to Heal as One Act".