Manila Bulletin

BSP re­dis­count­ing to­tals P26.9 bil­lion at end-Septem­ber

- By LEE C. CHIPON­GIAN Business · Finance · Banking · Nigeria · Bangko Sentral ng Pilipinas

The cen­tral bank’s peso re­dis­count­ing fa­cil­ity in­creased to R26.9 bil­lion or up R6.2 bil­lion as of end-Septem­ber com­pared to R20.7 bil­lion end-Au­gust.

The re­dis­count­ing re­leases were how­ever lower than same pe­riod last year of R118.67 bil­lion.

The Bangko Sen­tral ng Pilip­inas (BSP) has been re­port­ing an un­mov­ing re­dis­count­ing num­ber of R20.7 bil­lion since April this year. The bank­ing sys­tem was awash with liq­uid­ity af­ter the BSP in­jected R1.5 tril­lion of liq­uid­ity by end-Septem­ber. This is now fur­ther in­creased to R1.9 tril­lion as of the first week of Oc­to­ber af­ter the cen­tral bank ad­vanced R540 bil­lion to the Na­tional Gov­ern­ment to fi­nance the bud­get deficit.

For the Jan­uary to Septem­ber pe­riod, re­dis­count­ing avail­ments rep­re­sent bor­row­ings against banks’ cred­its on trans­ac­tions re­lated to com­mer­cial and other cred­its.

The BSP said other cred­its ac­counted for 81.94 per­cent of the to­tal re­dis­count­ing loans dur­ing the pe­riod. These are bro­ken down as: 71.26 per­cent bank loans for cap­i­tal as­set ex­pen­di­tures; 10.67 per­cent per­ma­nent work­ing cap­i­tal; and 0.01 per­cent for hous­ing.

Com­mer­cial cred­its, on the other hand, ac­counted for 18.06 per­cent of the to­tal re­dis­count­ing loans per­tain. These are bank loans for im­por­ta­tion with a share of 10.93 per­cent and trad­ing of goods with 7.13 per­cent.

There were still zero avail­ments for the Ex­porters’ Dol­lar and Yen Redis­count Fa­cil­ity (EDYRF).

The BSP has ex­tended the tem­po­rary re­duc­tion of the term spread on peso, US dol­lar and Ja­panese yen re­dis­count­ing loans un­til Jan­uary 31, 2021 as “part of the BSP’s mea­sures to con­tin­u­ously pro­vide the needed liq­uid­ity to banks for pur­poses of main­tain­ing price and fi­nan­cial sta­bil­ity as the econ­omy re­cov­ers from the ef­fects of the coron­avirus dis­ease” in the coun­try.

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