Guidelines for Aligning Loan Interest Rates with Monetary Policy Measures

In light of the decision made by the Monetary Policy Committee to curtail inflation, the effects of the policy’s interest rate increase have already been incorporated into the six-month moving average rate for treasury bills (“SMART”). To harmonize loan interest rates with the monetary policy and foster economic dynamism, the following guidelines will be adhered to:

1. The interest rate for loans will be determined by adding a maximum margin of 3.50% to SMART.
2. For pre-shipment export loans and agricultural and rural loans, the interest rate will be determined by adding a maximum margin of 2.50% to SMART.

Following the issuance of these instructions, the interest rate margins specified in paragraphs 2(a) and 2(b) will apply to newly disbursed loans. In the case of a change in the interest rate for previously disbursed loans, the instructions outlined in paragraph 5 of BRPD Circular No. 09/2023 will be followed.

With the issuance of this directive, the directive under BRPD Circular Letter No. 64/2023 is hereby revoked. Furthermore, the instructions stated in BRPD Circular No. 09/2023 and BRPD Circular Letter No. 27/2023 will remain unchanged.