Script and video flow:

Clips BSP logo lalabas next building nila (music background)

Scene 1: Someone crossing pedestrian lane, tas papasok sa loob ng ABC Bank to avail a loan.

Scene 2: ABC Bank manager nasa mesa tinitignan yong papers and notice that someone is availing a
loan but hindi na nila kayang ihandle ito dahil sa extension of loans in clients. Habang nag iisip he pop
up in her mind

Scene 3: lumabas sa ulo niya like clouds basta yong thinking hahahah, papasok ngayon yong isa
member natin na mag didiscuss about rediscounting facility.

Scene 4: On a big screen

 Rediscounting is one of the monetary tools of the Bangko Sentral ng Pilipinas (BSP) to regulate
the level of liquidity in the financial system.
 It is stand as credit facility provided by the BSP to help banks meet temporary liduidity needs by
refinancing the loan they extend to their clients. Through the facility, the BSP also makes
possible thetimely delivery of cridet to all productive sectors of the economy.

Scene 5: Pumasok ulit si manager and say “ WAIT! How does the rediscounting cycle go?”

Scene 6: Student ulit papasok sa loob ng big screen and say:

 A bank extends loans to end-user borrower’s (EUB’s) who execute instruments (i.e., promissory
notes), drafts or bills of exchange in favor of the bank. The bank rediscounts the credit
instruments of end-user borrower’s (EUB’s) by endorsing the same in favor of the BSP. The BSP,
in turn, lends the bank an amount equivalent to a certain percentage of the face
amount/outstanding balance of the end-user borrower’s (EUB’s) credit instruments.

Scene 7: Papasok ulit si manager and “ ahh that is how does the discounting cycle go, somehow what
is the role of rediscounting in our monetary system?

 In section 81 of the Republic Act No. 7653, as amended by R.A. No. 11211, otherwise known as
“The New Central Bank Act”. The BSP may extend three types of credit operations to banking
institution, namely: Normal credit operations, Special credit operations, and Emergency credit
operations. As a matter of policy of the BSP, the Lender of Last Resort (LOLR) principle shall
apply to all three credit Operations.
Scene 8: Papasok ulit yong Manager and say “Wait I think there are types of rediscounting facilities
and what are papers are eligible for rediscounting?

 Qualified BSP- supervised banks may avail themselves of the Peso Rediscount Facility and
Exporter’s Dollar and Yen Rediscount Facility ( EDYRF)
 The following are among the papers eligible for rediscounting:
1. Commercial credits- The corresponding BSP rediscount loan may have a maturity of
180 days from date of rediscount but shall not go beyond the maturity date of the credit
instrument.
2. Production credits – Credit instruments related to the production or processing of
agricultural, animal, mineral, or industrial products with maturities of not more than 360
days from date rediscount. Renewable but not to exceed 180 days
3. Others Credits- special credit instruments not otherwise rediscounting under
Commercial and Production credits, such as housing loans, services, agricultural loans
with long gestation period. The corresponding BSP rediscount loan may have a maturity
date of up to 360 days from the date of rediscount but shall not go beyond the maturity
date of the PN ( renewable depending on the type of credit).

Scene 9: Managers: To meet the temporary liquidity of my ABC bank I should go to rediscounting
facility of BSP who will be refinancing the loan I extend for my clients.

Scene10: Manager drive a car papunta sa BSP and last Sign ng mga papers sa rediscounting Facility
ng BSP.