Changes in the Exporters' Dollar and Yen Rediscount Facility (EDYRF)

August 15, 2013 BSP CIRCULAR NO. 807-13 SUBJECT : Changes in the Exporters' Dollar and Yen Rediscount Facility (EDYRF) Pursuant to Monetary Board Resolution No. 1267 dated 1 August 2013, the provisions of the following Subsections of Section X269 of the Manual of Regulations for Banks (MORB), covering the guidelines on rediscounting with the Bangko Sentral ng Pilipinas are hereby amended as follows: 269.2. Eligible papers and collaterals. xxx xxx xxx (After last paragraph under a. Commercial Credits) Dollar-denominated trust receipts covering importation of goods and raw material are also considered eligible papers for rediscounting under the EDYRF. xxx xxx xxx (After last sentence of the first paragraph under c. Other Credits) Dollar-term loans to finance capital expenditures (plant expansion/modernization) by exporters are also considered eligible papers for rediscounting under the EDYRF provided they are booked in the regular banking units. xxx xxx xxx 269.6. Rediscounting rates/lending rates and liquidated damages. The rediscount rates for peso, dollar and yen loans shall be as follows: DAETHc xxx xxx xxx b. Dollar/Yen Rediscounts Based on the 90-day London Inter-Bank Offered Rate (LIBOR) plus 200 bps plus term premia for longer maturities as follows: Term Premium 1-90 days 90-day LIBOR + 200 bps 91-180 days 90-day LIBOR + 200 bps + 6.25 bps 181-360 days 90-day LIBOR + 200 bps + 12.50 bps xxx xxx xxx 269.8. Repayments/Remittance of Collections/Arrearages. The following shall govern repayments, remittance of collections, and arrearages: a. Repayments xxx xxx xxx (2) Dollar/Yen Rediscounts xxx xxx xxx If the foreign currency denominated loans are not settled on maturity date, the borrowing bank's DDA with the BSP shall be debited automatically for the peso equivalent of the matured obligation plus accrued interest due thereon. The foreign exchange (FX) rate at the time of the loan repayment shall not be lower than the FX rate at the time of loan availment and any FX loss arising from default or repayment shall be for the account of the borrower and not for the BSP. xxx xxx xxx Effectivity. This Circular shall take effect on November 15, 2013. FOR THE MONETARY BOARD: (SGD.) NESTOR A. ESPENILLA, JR. Officer-in-Charge