Bangko Sen­tral loans may rise 10pc in 2nd half

The Pak Banker - - Company+Boss News -

PARIS: Bank loans are ex­pected to keep a healthy growth rate of 9 per­cent to 10 per­cent in the sec­ond half of the year, or at the same pace of ex­pan­sion in the first half, Bangko Sen­tral Gov. Amando Te­tangco Jr. said over the week­end. "It is hard to say, but maybe bank loans will have about the same pace of growth of 9 to 10 per­cent in the sec­ond half," Te­tangco said.

He said cor­po­rate and con­sumer credit will con­tinue to drive bank lend­ing in the sec­ond half of the year, amid the strong re­cov­ery of the coun­try's gross do­mes­tic prod­uct.

The econ­omy posted a ro­bust 7.9-per­cent ex­pan­sion in the sec­ond quar­ter, sus­tain­ing the 7.8-per­cent growth in the first quar­ter, on the back of strong in­vest­ments, con­struc­tion and man­u­fac­tur­ing.

Bangko Sen­tral ear­lier re­ported that out­stand­ing loans of uni­ver­sal and com­mer­cial banks, ex­clud­ing banks' re­verse re­pur­chase place­ments, rose 9.6 per­cent year-on-year to P2.18 tril­lion as of June.

"The sus­tained ex­pan­sion of bank lend­ing re­flects the strength­en­ing of do­mes­tic eco­nomic ac­tiv­ity," Bangko Sen­tral said. In­clud­ing the P180-bil­lion place­ments in Bangko Sen­tral, the out­stand­ing loans of uni­ver­sal and com­mer­cial banks amounted to P2.36 tril­lion in July, up by 5.5 per­cent year-onyear. Loans for pro­duc­tion ac­tiv­i­ties ac­cel­er­ated 9.3 per­cent to P1.956 tril­lion while loans for house­hold con­sump­tion jumped 13 per­cent to P180.49 bil­lion.

Te­tangco said aside from bank loans, com­pa­nies were also look­ing at the bond and eq­ui­ties mar­ket to raise funds for their in­vest­ment projects. "So they have more op­tions now. If you look at the size of the bond is­sues, these are go­ing up in 2010 and will con­tinue to grow," he said. -PB News

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