MANILA – Availments under the Bangko Sentral ng Pilipinas’ (BSP) peso rediscount facility rose to PHP122.167 billion by end-December 2019 from PHP71.524 million in the previous year.
Data released by the central bank on Friday showed that total availments under the peso rediscount facility last year was unchanged from the end-October 2019 level.
Rediscounting allows qualified banks to take out loans from the central bank using the eligible papers of end-user borrowers as collaterals.
This facility helps address banks’ temporary liquidity needs by refinancing their clients’ loans.
Loans taken through this facility represent banks’ credit on transactions for commercial, production and other credits, with the latter pertaining to capital asset expenditures, permanent working capital, and housing loans, among others.
Meanwhile, as in the past, banks have not availed of the exporters dollar and yen rediscount facility (EDYRF). (PNA)
