The Monetary Board, in its Resolution No. 1141 dated October 22, 1990 approved the following amendments to the provisions of Books I-III of the Manual of Regulations for Banks and Other Financial Intermediaries governing the rediscounting of eligible paper under the rediscount window:

SECTION 1. Subsection 1271.1 (Book I), 2271.1 (Book II) and 3271.1 (Book III) of the Manual of Regulations are hereby amended to read as follows:

œLoan Value, Rediscount and Lending Rates - The loan value and rediscount rate for the rediscount facility of the Central Bank shall be as follows:

Eligible Papers	Loan Value	Rediscount Rate (In % p.a.)
Agricultural
Production, Cottage
and Small Industries
Credits, General
Purpose Working
Capital Financing
and Other
Short-Term Credits	80%	14.0

Provided that the loan value for export credits shall be 100 percent.

The lending rates that the banks may charge on their rediscounted papers shall not be subject to any ceiling. However, the spreads made by banks shall be subject to closer monitoring by the Central Bank to ensure that these are consistent with the prevailing market rates. 

Provisions of existing Circulars inconsistent with the above are deemed superseded.

This Circular shall take effect immediately.

Adopted: 30 Oct. 1990

(SGD.) JOSE L. CUISIA, JR.
Governor