Eligibility and Covered Currencies
- Qualified banks may avail themselves of the facility against eligible loans denominated in either US Dollars or Japanese Yen.
- This expands the scope of the previous facility which covered only US Dollar denominated loans.
Provisions for Yen-denominated Loans
- Interest rate for Yen loans shall be based on the prevailing three-month LIBID (London Interbank Bid Rate) on Yen.
- The interest rate will be reviewed and set every three months to reflect prevailing market conditions.
- The bank’s spread on foreign exchange loans must not exceed 2% per annum, after considering applicable taxes.
- Loan proceeds must be released and repaid in Japanese Yen.
- Documents such as Letters of Credit (L/C), Purchase Orders (P/O), or Sales/Service Contracts (S/C) assigned to the loans must explicitly state that payments to exporters shall be made in Japanese Yen.
Continuity of Existing Terms
- All other terms and conditions that applied under the previous Exporters Dollar Facility as governed by BSP Circular No. 68, as amended, shall also apply to the EDYRF.
Effective Date
- The amendments take effect immediately upon the issuance of the Circular on April 27, 1999.
Authoritative Basis
- The amendments were adopted pursuant to Monetary Board Resolution No. 507 dated April 21, 1999, and issued through BSP Circular No. 199.
- The Circular is signed by the Governor of the Bangko Sentral ng Pilipinas, Gabriel C. Singson.