The Bangko Sentral ng Pilipinas updatesthat the applicable BSP rediscount rate
for the month of November 2020 for loans under the Peso Rediscount Facility remains
at 2.75 percent, regardless of loan maturity (i.e., 1 to 180 days), while rediscount rates
for loans under the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) have been
set at 2.21575 percent for US Dollar and 1.89733 percent for Japanese Yen, regardless
of loan maturity (i.e., 1 to 360 days), in view of the temporary reduction of the term
spread on rediscounting loans until 31 January 2021.
Meanwhile, for the period 01 January to 31 October 2020, total availments1 by
banks under the Peso Rediscount2 Facility remains unchanged at ₱26.9 billion
representing borrowings against banks’ credits on transactions related to Commercial
and Other Credits. Other Credits, which comprise 81.94 percent of the total
rediscounting loans, pertain to bank loans for capital asset expenditures (71.26
percent), permanent working capital (10.67 percent) and housing (0.01 percent).
Meanwhile, Commercial Credits, which is at 18.06 percent of the total rediscounting
loans, pertain to bank loans for importation (10.93 percent) and trading (7.13 percent)
of goods. No bank availed under the EDYRF as of 31 October 2020.
1 Rediscounting availments are classified by type of underlying credit (i.e. Commercial, Production
and Other Credits) based on the eligible papers offered by banks as collateral. The BSP does not
allocate credits on specific sectors nor engage in development banking or financing in accordance
with Section 128 of Republic Act (R.A.) No. 7653, as amended by R.A. No. 11211, otherwise known
as “The New Central Bank Act”.
2 Rediscounting is a BSP credit facility extended to qualified banks with active rediscounting lines to
meet their temporary liquidity needs by refinancing the loans they extend to their clients using the
eligible papers of its end-user borrowers. These eligible papers include credit instruments such as
promissory notes, drafts or bills of exchange of the following nature: a) Commercial Credits –
resulting from the importation, exportation, purchase, sale, local transportation or storage of nonperishable and insured goods or products in authorized bonded warehouses or in other places
approved by the Monetary Board; b) Production Credits – used for 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 long
gestation period, and medium and long-term loans.