Philippines: Circular No. 282 Series of 2001

This directive is 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 directive 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 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 of collection/ payment/ repayment;
• Section eight comprises 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.

Finally, the repelling clause states that the circular supersedes provisions of existing circulars.