Rediscount availments up in Jan-Feb
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Mon, 11 Mar 2019 16:26:54 +0000
Bank availments of the Bangko Sentral ng Pilipinas’ (BSP) peso rediscount facility surged in the first two months of the year, data released on Monday showed.
Total loans rose to P34.895 billion, six times more than the P5.810 billion borrowed during the same two-month period a year ago.
The bulk or 57.97 percent was classified as other credits by the BSP. Specifically, the loans were used for capital asset expenditures (40.61 percent), permanent working capital (11.92 percent) and loans to other services (5.44 percent).
The remainder was classified as commercial credits with loans for importation taking up 31.18 percent and trading of goods accounting for 10.85 percent.
Rediscounting is a privilege given by the central bank to banks 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 that it had rediscounted rates for March. For loans under peso rediscount facility, rates have been set at 5.3125 percent per annum for loans with 1-90 days maturity and 5.3750 percent for loans with 91-180 days maturity.
“The peso rediscount rates are based on the latest available BSP overnight lending rate plus term premia,” it added.
Banks, meanwhile, did not tap the Exporters Dollar and Yen Rediscount Facility (EDYFR) for the period.
For March, EDYRF rates were set as follows: For 1-90 days maturity, 4.61513 percent per annum for US dollar and 1.92167 percent for yen; for 91-180 days, 4.67763 percent for US dollar and 1.98417 percent for yen; and for 181-360 days, 4.74013 percent for US dollar and 2.04667 percent for yen.
The rates “are based on the 90-day London Inter-Bank Offered Rate as of 28 February 2019 plus 200 basis points plus term premia,” the Bangko Sentral said.
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