Peso Rediscounting Rate

19 August 2004

Mr. Senen D. Glorioso
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,

Department of Loans and Credit