REVISED CEDA PORTFOLIO LIMITS

2008-10-28

Following the review of CEDA, the Government approved recommendations to increase CEDA loan limits and repayment period. CEDA loan limits have remained unchanged since its inception in 2001, consequently not reflective of inflation effects, the cost of doing business considering passage of time, and the high percentage of capital outlay required for some projects.The government revised loan limits and repayment period as follows:

• Raise the loan upper limit from P2 million to a maximum of P4 million for medium scale projects
• Raise upper limit for small scale projects from P 150,000 to P 500,000
• Retain interest rate of 5% for loans up to P 500,000
• Retain interest rate of 7.5% to cover loans ranging from P500,001 to P4 million
• Increase the length of repayment period from seven (7) years to a maximum of fifteen (15) years depending on the nature of the project
• Raise the guarantee cover from P2 million to a maximum of P4 million

The revised limits have not yet been effected, the public will be informed in due course.