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BSP Rediscount Rates for July


The BSP announced today the rediscount rates applicable on loan availments by banking institutions for the month of July 2007.

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

Loan Maturity 

02 to 06 July 2007*

09 to 13 July 2007**

90 days or less

2.996 percent p.a.

3.477 percent  p.a.

91-180 days

4.274 percent  p.a.

4.639 percent  p.a.

181-360 days

5.174 percent  p.a.

5.438 percent  p.a.

*  Based on auction held on 21 May 2007.
**  Based on auction held on 02 July 2007.

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 06 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 5.32 percent  p.a.
Yen 0.64438 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 rediscounting loans as of 30 June 2007.  Under the Peso Rediscount Facility, total availments of commercial, thrift and rural banks amounted to P12.327 billion, of which 56.8 percent went to commercial credits, 25.9 percent to agricultural and industrial credits, 0.1 percent to microfinance, 1.5 percent to housing and 15.7 percent to other credits. 

Since the start of the Export Dollar Facility in 1995, aggregate availments of 29 commercial banks amounted to US$2.093 billion, benefiting 560 export borrowers.  For the months January to June 2007, availments totaled US$0.027 billion.  On the other hand, four commercial banks had total availments of Y1.987 billion under the Yen facility which opened in June 1999.  Y0.019 billion was availed of for the period January to June 2007.

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