Rediscount availments soar in Jan-April
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Fri, 10 May 2019 16:24:33 +0000
AVAILMENTS of the Bangko Sentral ng Pilipinas’ (BSP) peso rediscount facility surged in the first four months of the year, data released on Friday showed.
Total loans rose to P73.724 billion, nine times more than the P7.651 billion borrowed in the same period a year ago.
The bulk, or 64.91 percent, of it were classified as other credits by the BSP. The loans were used for capital asset expenditures (49.76 percent), loans to other services (9.12 percent), permanent working capital (5.96 percent) and housing loans (0.07 percent).
The rest were classified as commercial credits at 35.09 percent, with loans for importation taking up 27.23 percent and trading of goods accounting for 7.86 percent.
Rediscounting is a privilege given by the central bank to lenders qualified to obtain loans or advances using eligible borrowers’ papers as collateral.
Under the rediscount window, a bank wanting to liquidate outstanding client loans can run to the Bangko Sentral to swap these for cash at a discount.
The BSP also said it had set rediscounted rates for May.
For loans under the peso rediscount facility, rates were pegged at 5.0625 percent per annum for loans with a maturity of one to 90 days and 5.1250 percent for loans with a maturity of 91 to 180 days.
Banks, meanwhile, did not tap the Exporters Dollar and Yen Rediscount Facility (EDYFR) for the period.
For May, EDYRF rates were set as follows: For 1-90 days maturity, 4.57563 percent per annum for the US dollar and 1.93500 percent for the yen; 91-180 days, 4.63813 percent for the dollar and 1.99750 percent for the yen; and 181-360 days, 4.70063 percent for the dollar and 2.06000 percent for the yen.
The rates “are based on the 90-day London Inter-Bank Offered Rate as of 30 April 2019 plus 200 basis points plus term premia,” the Bangko Sentral said.
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