19 August 2004
Mr. Senen D. Glorioso
President
Rural Bankers Association of the Philippines
RBAP Bldg., A. Soriano Ave., cor. Arzobispo St.
Intramuros, 1000 Manila
Dear Mr. Glorioso:
In accordance with Bangko Sentral ng Pilipinas (BSP) Circular No. 411 dated 29 October 2003, we wish to inform you that effective 4 December 2004, the peso rediscounting rate shall revert automatically to the market-based pricing mechanism provided for under Subsection X269.5 of the Manual of Regulations for Banks (MORB), as amended by Circular No. 354 dated 4 October 2002, to wit:
The rediscount rates for peso loans shall be based on the applicable Treasury Bill (TB) rates for the preceding week as follows:
Loan Maturity
Applicable TD Rate
90 days or less 91-day
91-180 days 182-day
181-360 days 364-day
Please disseminate the foregoing to your member-banks.
Thank you.
Very truly yours,
-SGD_
ROLANDO ALEJANDRO Q. AGUSTIN
Director
Department of Loans and Credit
