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BSP Rediscount Rates for October


The BSP announced today the rediscount rates applicable on loan availments by banking institutions for the month of October 2006.

For loans under the Peso Rediscount Facility, the rates are as follows:

Loan Maturity

02 to 06 October 2006

09 to 13 October 2006

90 days or less

5.449 percent p.a.

5.449 percent p.a.

91-180 days

5.851 percent p.a.

5.851 percent p.a.

181-360 days

6.791 percent p.a.

6.791 percent p.a.

* Based on the last auction held on 25 September 2006.  No auction was held on 02 October 2006

In line with the implementation of the market-based pricing mechanism on rediscounting credits, as scheduled under Circular 411 dated 29 October 2003, as amended by Circular No. 515 dated 6 march 2006, the weekly peso rediscount rates are based on the rates for Treasury Bills with the corresponding maturities during the last auction.

Meanwhile, for loans under the Exporters' Dollar and Yen Rediscount Facility (EDYRF), the rates are as follows:

Dollar     -   5.32188 percent p.a.
Yen         -   0.3800 percent p.a.

In line with the implementation of Circular No. 515, the rediscount rates for the Dollar and Yen Facility, which were previously based on their respective London Inter-Bank Bid Rate (LIBID), have been aligned with market rates.  Thus, the rediscount rates are adjusted based on their respective London Inter-Bank Offered Rate (LIBOR) for the last working day of the immediately preceding month.

The BSP also announced the level of availments of rediscount loans as of 30 September 2006.  Under the Peso Rediscount Facility, total availments of commercial, thrift and rural banks amounted to P25.707 billion, of which 48.7 percent went to export/import financing, 7.2 percent to agricultural credits, 38.6 percent to commercial and industrial credits, 0.1 percent to microfinance, 5.2 percent to housing and 0.2 percent to other credits/services.

Since the start of the Export Dollar Facility in 1995, aggregate availments of 29 commercial banks amounted to US$2.055 billion, benefiting 557 export borrowers.  For the period January to September 2006, availments totaled $0.57 billion.  On the other hand, four commercial banks had total availments of ¥1.959 billion under the Yen facility which opened in June 1999.  ¥0.14 billion as availed of for the period January to September 2006.

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