BSP rediscount rate for January 2022 and loan availability for the period January 1 to December 31, 2021

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HaveThe Bangko Sentral ng Pilipinas (BSP) informs the public that the applicable rediscount1 the peso rediscount facility (PRF) loan rate remains at 2.50 percent regardless of maturity (ie, 1 to 180 days). Meanwhile, the rediscount rates on the Exporter Dollar Yen Rediscount Facility (EDYRF) loans are set at 2.20913% for the United States dollar (USD) and at 1. 92,400% for the Japanese yen, regardless of maturity (i.e. 1 to 360 days), effective January 10, 2022.

For the period from January 01 to December 31, 2021, total availability2 banks against their RL3 remain unchanged at 6.12 million pula for PRF loans. These availabilities represent the rediscount of Production Credits which financed industrial transformation (65.35%); and Other credits which financed the capital expenditure (24.81%) and the permanent working capital (9.84%).4 On the other hand, there was no loan provision under the EDYRF for the period from January 01 to December 31, 2021.5

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1 Rediscount is one of the credit facilities offered by BSP. This facility is extended to qualified banks with active rediscount lines (RLs) to meet their temporary liquidity needs by refinancing the loans they grant to their customers using the eligible papers of their end borrowers. These eligible papers include credit instruments such as promissory notes, drafts or bills of exchange of the following nature: in approved bonded warehouses or in other places approved by the Monetary Council; b) Production credits – used for the production or processing of agricultural, animal, mineral or industrial products; or c) Other credits – special credit instruments such as, but not limited to, microfinance, housing loans, services, agricultural loans with a long gestation period, and medium and long term loans.

2 Rediscount cash is categorized by type of underlying credit (ie commercial, production, and other credit) based on eligible papers offered by banks as collateral. The BSP does not allocate credits to specific sectors nor engage in banking or development finance operations in accordance with Article 128 of the Law of the Republic (RA) No 7653, also known as of “New Law on the Central Bank”, as amended by RA n ° 11211.

3 As of November 30, 2021, thirteen (13) universal / commercial banks, six (6) savings banks and eighteen (18) rural / cooperative banks have approved RLs with a BSP totaling 346,199.95 million pesos.

4 The percentages reflected represent the proportion of specified credit types to the total peso rediscount loans for the period January 1 to December 31, 2021.

5 The last available under the EDYRF in 2016 was a USD rediscount loan.

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