Nov rediscount loans reach P10.8 B
The amount of rediscount loans reached a record P10.75 billion as of the end of November this year amid higher credit demand particularly for infrastructure projects under the public private partnership (PPP) scheme.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed rediscount loans extended to local banks to finance the needs of businesses and households only amounted to P424 million from January to November last year.
Bulk of 75.8 percent of the total amount disbursed this year went to capital expenditures, permanent working capital and other service activities.
Around 24.1 percent, on the other hand, went to commercial credits while less than 0.1 percent went to production credits.
For the month of December, the BSP pegged the rates for the rediscounting windows I at 3.5625 percent for 90 days and 3.625 percent for 180 days as well as for the rediscount windows II at three percent for 90 days, 3.0625 for 180 days, and 3.125 percent for 360 days
Last June 3, the central bank adopted the interest rate corridor ( IRC) system, resulting in the adjustment of key policy rates.
The BSP’s Monetary Board on Thursday kept interest rates steady. The overnight lending rate was pegged at 3.5 percent, the overnight reverse repurchase at three percent, and the overnight deposit at 2.5 percent.
Availments under the central bank’s exporters dollar and yen rediscounting facility ( EDYRF) amounted to $ 10.4 million in the first half. There was no yendenominated availment under the EDYRF for the same period.
US dollar-denominated loans under the EDYRF carry a rate of 2.93417 percent for those maturing within 90 days, 2.99667 percent for those maturing within 180 days, and 3.05917 percent for those maturing within 360 days.
Loans denominated in yen carry a rate of 1.93257 percent for 90 days; 1.99507 percent for 180 days, and 2.05757 percent for 360 days.
The rediscounting facility allows banks to borrow money from the BSP as long as these are backed by loan receivables. This ensures banks have funds to lend to productive sectors in time of credit crunch.
Over the past few years, the use of the central bank facility has been declining steadily as there is enough cash circulating in the economy.
Last year, the central bank’s peso rediscount facility by thrift and rural banks plunged 67.3 percent to P427 million.