• Peso rediscount loans 4-mth drop slows to 86%

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    THE decline in loans under the peso rediscount facility of the central bank slowed in the first four months of 2015 from the comparable period a year earlier.

    Data released by the Bangko Sentral ng Pilipinas on Monday showed that borrowings by thrift and rural banks under the facility dropped to P80 million in the January to April period from P572 million a year earlier.

    The rediscounting facility allows qualified banks to borrow from the central bank using their eligible borrowers’ papers as collateral.

    The facility helps banks meet their short-term liquidity needs.

    The BSP data also showed that the use of the exporters’ dollar and yen rediscount facility (EDYRF) likewise fell sharply during the period.

    Only one universal bank availed of $700,000 from the financing facility, benefiting one exporter. This reflects a 75 percent decline compared with the $2.8 million of loans recorded in the same period last year, the central bank said.

    The BSP said no yen loans were availed of under the facility during the four-month period.

    Of the peso rediscount borrowings, 66.4 percent went to commercial credits, 6.4 percent to production credits, and the remaining 27.2 percent to other credits such as housing (11.8 percent), permanent working capital (8.2 percent), and capital expenditure (7.2 percent).

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