Revised Rediscount/Lending Rates for Peso and Dollar/Yen

BANOKo SeNrnaL No PILIPINAs OFFICE OF THE GOVERNOR ctRcutAR No. 1071 Series of 2O2e Subject: Revised Rediscount/Lending Rates for peso and Doilar/yen The Monetary Board, in its Resolution No. 1917 dated 13 December 2019, approved the amendments to Section 282 of the MORB on Rediscount/Lending Rates and Liquidated Damages. Section 1. Section 282 on Rediscount/Lending Rates and Liquidated Damages is hereby retitled and amended to read as follows: 282 xxx xxx Rediscount/Lending Rotes. The following are the guidelines in establishing the Bangko Sentral rediscount rates for peso, dollar and yen loans: a. Peso Rediscount Rates The peso rediscount rate shall be the Bangko Sentral overnight (O/N) lending rate plus a spread depending on the term of the loan as may be determined by the Bangko Sentral. The spread between these two may change periodically to complement changes in the Bangko Sentral's monetary policy goals. Banks eligible to apply in the Bangko Sentral's peso rediscounting window may avail of a 1-90 days and/or 91-i.80 days term facility, subject to applicable rediscount rates. b. Dollar/Yen Rediscount Rates The dollar/yen rediscount rates shall be the 90-day London Inter-bank Offered Rate (LIBOR) or in the absence of LIBOR, an applicable benchmark rate, plus an appropriate spread depending on the term of the loan as may be determined by the Bangko Sentral. The spread between these two rates may also vary to reflect movements in the market interest rates and to achieve monetary policy objectives. Banks eligibleto apply idthe Bangko sentral's foreign currency rediscounting window may avail of the 1-90 days, 91-180 days, and/or 181-360 days term facility, subject to applicable rediscount rates.

The applicable rates for both terms of the rediscounting window shall be posted in the Bangko Sentrafs website, within 10 catendar days from the reference quarter. Past due Bangko Sentral x x x Section 2. Effectivity This Circular shall take effect fifteen (15) calendar days after its publication either in the official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: BENJAMIN E. DIOKNO Governor o t lrnr. ry 2o2o