A logo of Bangko Sentral ng Pilipinas (Central Bank of the Philippines) is seen at their main building in Manila, Philippines March 23, 2016. REUTERS/Romeo Ranoco/File Photo

The Bangko Sentral ng Pilipinas (BSP) implemented on Monday higher interest rates on peso rediscount facilities, the central bank said in a statement.

Loans with maturity between one and 90 days now have an interest rate of 4.0625 percent, while loans with 91- to 180-days maturity have a yield of 4.1250 percent.

The increase in interest rates followed the Monetary Board’s hiking of key policy rates by 25 basis points last week.

Rates are based on the latest available overnight lending rates of the central bank, plus term premia.

Previously, peso rediscount rates stood at 3.8125 percent for loans with one-day to 90-days maturity and at 3.8750 percent for loans with 91- to 180-days maturity.

BSP data showed that in the first five months of the year, the availment of peso rediscount facility reached PHP8.92 billion, a decline of 40 percent from the same period in 2017 amounting to PHP15 billion.

In the central bank’s peso rediscount facility, banks may obtain loans and advances from the BSP by using their clients’ eligible papers as collaterals.

This helps banks to have more liquidity in order for them to refinance the loans they extend to their clients. PNA