MANILA, Philippines - Prepayments of foreign loans by public and private firms declined in the first nine months of 2014 from a year ago, Bangko Sentral ng Pilipinas data showed.
Total prepayments on medium and long-term foreign loans amounted to $253.9 million as of September last year, down 91 percent from $2.9 billion in the same period in 2013.
The bulk of the amount came from the public sector which made a prepayment of $89.2 million. The amount, however, was 81-percent lower than the $467.8 million in 2013.
The private sector’s prepayments amounted to $164.7 million, down sharply from $2.4 billion in the same period in 2013.
The BSP encourages the prepayments of foreign obligations especially when the peso is strong.
Central bank data showed the peso averaged 44.26 to a dollar in the first nine months of last year, weaker than the 42.06:$1 average in the same period in 2013.
The BSP recorded $2.8 billion in foreign loans prepayments by the government and private companies in 2013. The figure was 55 percent above the $1.8 billion recorded in 2012.
Of the total amount, the government prepaid $471.7 million worth of foreign-denominated obligations, while the private sector accounted for the remaining $2.3 billion.