The Bangko Sentral ng Pilipinas (BSP) updates the public that the applicable rediscount rate on loans under the Peso Rediscount Facility (PRF) remains at 2.5%, regardless of maturity.
Rediscounting is one of the credit facilities offered by the BSP. This facility is 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 their end-user borrowers.
The 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 non-perishable 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.
Meanwhile, rediscount rates on loans under the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) are set at 2.30886% for the United States Dollar (USD) and 1.97937% for the Japanese Yen, regardless of maturity (i.e., 1 to 360 days), effective Feb. 8, 2022.
Further, there were no availments against the rediscounting lines of banks with the BSP under the PRF and EDYRF for the period covering Jan. 1 to 31, 2022.
Rediscounting availments are classified by type of underlying credit
As of Dec. 31, 2021, twelve (12) universal/commercial banks, seven (7) thrift banks, and eighteen (18) rural/cooperative banks have approved rediscounting lines with the BSP totaling P316,507.73 million.
The last availment under the EDYRF in 2016 was a USD rediscounting loan. (BSP PR) – bny
