BSP peso rediscount facility availments drop in Jan-May ‘18

By Kris Crismundo

June 11, 2018, 7:28 pm

MANILA -- Banks’ availment of central bank's peso rediscount facility from January to May this year only reached PHP8.92 billion, a 40-percent drop from the PHP15-billion availment of the facility in the same period in 2017.

Bangko Sentral ng Pilipinas (BSP) data released on Monday showed that 56.11 percent of the borrowings in the first five months of the year were extended to other credits, particularly capital asset expenditure at 44.17 percent, services at 6.49 percent, permanent working capital at 5.39 percent, and housing at 0.06 percent.

In the same period last year, other credits shared 98.5 percent of the total borrowings.

Moreover, 44 percent of the loans from January to May this year were extended to commercial credits, while only 0.02 percent was for production credits.

The central bank also reported that there was no availment of exporters’ dollar and yen rediscount facility (EDYRF) for the said period.

Meanwhile, the BSP posted rates for the rediscount facilities for this month.

For the local currency borrowings, a loan with maturity of 1-day to 90 days has interest rate of 3.8125 percent, plus term premia. Those with maturity period of 91 to 180 days has yield of 3.8750 percent, plus term premia.

For dollar denominated loans, a 4.32125-percent rate will be charged on 1-day to 90-day loans; 4.38375 percent on 91- to 180-day loans; and 4.44625 percent for 181-day to 360-day loans.

Yen denominated loans were charged with lower interest rates of 1.98183 percent for 1- to 90-day loans; 2.04433 percent for 91- to 180-day loans; and 2.10683 percent for 181- to 360-day loans.

Through the peso rediscount facility and EDYRF, qualified banks may obtain loans and advances from the central bank by using eligible papers of its end-user borrowers as collaterals.

Through these facilities, the BSP helps the banking sector acquire more liquidity in order for them to refinance the loans they extended to their clients. (PNA)