MANILA, Philippines - Prepayments of foreign loans by the government and the private sector dropped by 95 percent as of April from the same period last year, data from the Bangko Sentral ng Pilipinas showed.
Total prepayments of medium – and long-term foreign loans amounted to $86.2 million in the first four months of the year, below the $1.62 billion recorded last year.
This was mostly made up of prepayments by the government, which ballooned to $81.6 million during the period from only $2.1 million a year ago.
The private sector, meanwhile, only prepaid $4.6-million worth of loans, a plunge from the $1.61 billion seen as of April 2013.
The central bank encourages the prepayments of foreign exchange-denominated obligations when the peso is strong.
The peso averaged 44.81 to a dollar in the four months to April, a fall from the 40.81: $1 average in the same period last year.
In 2013, total prepayments of foreign loans made by the government and private firms summed up to $2.8 billion, 55 percent above the $1.8 billion made in 2012.
The government prepaid $471.7 million worth of loans, 26 percent below the $641.2 million recorded in 2012.
The private sector, meanwhile, accounted for the remaining $2.34 billion, which was double the $1.17 billion amount seen in 2012.