BSP’s rediscounting facility continues to post lower growth

MANILA, Oct. 12 (PNA) — Ample domestic liquidity along higher rates further lowered the availment in the Bangko Sentral ng Pilipinas (BSP) rediscount facility.

Data released by the central bank Monday showed that total availments in the Peso Rediscount Facility reached Php 397 million in end-September 2015, 61 percent lower than year-ago’s Php 1 billion.

Bulk of the amount or about 89.6 percent was extended to commercial credits, 7.5 percent to other credits like housing, permanent working capital, and capital expenditure, and 2.9 percent to production.

Rate in this facility remained at 6.1250 for the 30-day loan, 6.1875 for the 90-day, and 6.2500 for the 180-day loan.

Relatively, availment in the Exporters Dollar and Yen Rediscount Facility (EDYRF) as of last September totaled to USD 0.7 million, down 89.9 percent compared to the USD 6.9 million in end-September 2014.

It benefitted one exporter, the central bank said.

Still, there was no yen-denominated loan availment.

EDYRF loans are based on respective 90-day London Inter-Bank Offered Rate (LIBOR). The central bank said this has additional “200 basis points plus term premia for longer maturities.”

For September, loans under EDYRF with maturities of one to 90 days stood at 2.3290 percent, the 91-180 days at 2.3915 percent and the 181-360 days was at 2.4540.

These are higher than the previous month’s level, which were at 2.3086 for the one to 90 days loan, 2.3711 for the 91-180 days and 2.4336 for the 181-360 day.

However, the October 2015 rate for the 1-90 days EDYRF loan is lower at 2.3255 percent while it is 2.3880 for the 91-180 days and 2.4505 for the 181-360 days loan.

The rediscount facility is where banks can take out loans by pegging these against the loans they have extended to their clients. (PNA)