Friday June 7 2019
News Source: Global Exchanges
Focus: General - Global Exchanges
On 6th June 2019, the Securities and Exchange Commission (“SEC”), issued a notice in view of the numerous queries entertained by the operating department/s of the SEC with regard to the correct computation of the interest rates imposed by Lending Companies (“LCs”) and Financing Companies (“FCs”).
Adopting BSP Memorandum No. M-2011-040 in the case of LCs and FCs, an effective interest rate(“EIR”) calculation model for a loan, founded on established principles of discounted cash flow analysis, should be based on the actual features thereof.
The Notice was published along with some Illustrations/models of common loan features, which are also present as annexes in the BSP memorandum
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