ADX Energy : BSP Rediscount Rates for January 2020 and Availments as of December 2019

01.10.2020

The applicable rates for the Peso Rediscount Facility and the Exporters Dollar and Yen Rediscount Facility (EDYRF) for the month of January 2020 are as follows:

a. Peso Rediscount Facility Rates

Loan Maturity	Rate (%)
1-90 days	4.5625
91-180 days	4.6250

The Peso rediscount rates are based on the latest available BSP Overnight Lending Rate¹ plus term premia.

b. EDYRF Rates

Loan Maturity	Rate (%)
	Dollar	Yen
1-90 days	3.90838	1.95267
91-180 days	3.97088	2.01517
181-360 days	4.03338	2.07767

The rates for the EDYRF are based on 90-day London Inter-Bank Offered Rate (LIBOR) as of 31 December 2019 plus 200 basis points plus term premia.

Under the Peso Rediscount² Facility, total availments³ covering the period of 01 January 2019 to 31 December 2019 amounted to ₱122.167 billion, which remained unchanged from 31 October 2019 due to non-availment from rediscounting banks for the months of November and December 2019. The total availments represent borrowings against banks' credits on transactions related to Commercial, Production and Other Credits. Other Credits, which comprise 65.13 percent of total rediscounting loans, pertain to bank loans for Capital Asset Expenditures (38.75 percent), Loans to Other Services (19.62 percent), Permanent Working Capital (6.72 percent) and Housing Loans (0.04 percent). Commercial Credits at 34.86 percent of total rediscounting loans pertain to bank loans for Importation (24.93 percent), Trading (9.92 percent) and Export (0.01 percent) of goods or products. Meanwhile, Production Credits at 0.01 percent of total rediscounting loans pertain to bank loans for Agricultural Production.

There was no availment under the EDYRF for the period ending 31 December 2019.

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¹Such may change depending on revisions in the BSP policy rates.

²Rediscounting 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 non-perishable and insured goods or products in authorized bonded warehouses or in other places approved by the Monetary Board; b) Production Credit - 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.

³Rediscounting 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'.