Rediscount loan availments up 50%

MANILA, Philippines - Data from the Bangko Sentral ng Pilipinas (BSP) showed total rediscounting loan availments by banking institutions surged 50 percent in the first four months of the year.

Total availments under the central bank’s Peso Resdiscount facility amounted to P12 billion from January to April or P4.01 billion higher than the P8.01 billion booked in the same period last year.

About 82.1 percent of the total rediscounting loans availed of by commercial, thrift, and rural banks last year went to commercial credits while 3.9 percent went to agriculture and industrial clients.

Likewise, 7.1 percent went to capital expenditures, 4.2 percent to other services, 2.5 percent to permanent working capital, 0.2 percent to housing.

The BSP reported that aggregate availments under the US dollar facility of the Exporters’ Dollar and Yen Rediscounting Facility declined by 18.8 percent to $52.8 million in January to April compared to $65 million in the same period last year.

The facility was offered by 10 commercial banks benefiting 24 exporters.

The BSP said there was no availment under the Yen Facility during the period.

Rediscounting is a standing credit facility provided by the BSP to help banks meet temporary liquidity needs by refinancing the loans they extend to their clients.

Monetary authorities use rediscounting loans as a monetary tool to regulate liquidity.

Last year, total rediscounting loan availments by banking institutions plunged 45 percent to P27.37 billion last year from P49.76 billion in 2010.

The BSP lowered its peso rediscount rate at four percent per annum under its peso rediscount facility for all maturities effective March 5.

It has also pegged the rates for May at 0.23875 percent per annum under the EDYRF and 0.14429 percent per annum for its yen facility.