Bank rediscount loans decline 64% in 8 months

MANILA, Philippines - Rediscount loans extended to local banks to finance the needs of businesses and households fell 64 percent in the first eight months of the year, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

Availments under the BSP’s peso rediscount facility by thrift and rural banks reached P340.9 million from January to August, P600.5 million lower compared to P941.4 million in the same period last year.

Out of the total availments from January to June, the BSP said 87.9 percent went to commercial credits followed by 5.1 percent that went to housing, 3.4 percent for production credits, 1.9 percent for working capital of businesses, and 1.7 percent for capital expenditures.

The BSP has pegged the rates for the rediscounting windows I at 6.125 percent for 30 days; 6.1875 for 90 days; and 6.25 percent for 180 days as well as for the rediscount windows II at four percent for both 30 days and 90 days; 4.0625 for 180 days; and 4.125 percent for 360 days for the month of August.

Availments of the central bank’s exporters dollar and yen rediscounting facility (EDYRF) plunged 89.9 percent from January to August.

The BSP said only one universal bank borrowed $700,000 from the dollar facility compared to $46.9 million in the same period last year.