Circular No. 282 (governs rediscounting facility for microfinance)

Philippines

(enacted in 2001)

Circular No. 282 of 2001, issued by Bangko Sentral ng Pilipinas (BSP), provides guidelines governing the rediscounting facility available to rural and cooperative banks in the Philippines.

This circular is promulgated pursuant to Monetary Board Resolution Nos. 27 and 443 dated January 25 and March 15, 2001 respectively. The guidelines govern the rediscounting facility available to rural banks and co-operative banks for the purpose of providing liquidity assistance to support and promote microfinance programs.

The circular is divided into nine sections. Some of the important sections stipulate the following:

  • Section one sets out the eligibility obligation:
    • For borrowers;
    • For papers;
    • Manual of operation;
    • Prescribed financial rations and regulation;
  • Section two asserts that an application for microcredit line shall be filed with the department of loans and credit;
  • Section four details the documentary requirement for rural and co-operative bank applying for microcredit (MCR);
  • Section five relates to remittances; and
  • Section eight describes sanctions applicable to the rural or co-operative bank or the erring officer in case of any misrepresentation and violation of the provisions of this circular.