Private sector takes out more dollar loans in 3Q

MANILA – Foreign currency deposit units (FCDU) of banks issued more loans in the third quarter, according to the Bangko Sentral ng Pilipinas (BSP).

In a statement, BSP Governor Amando M. Tetangco, Jr. said FCDU loans grew by 2.6 percent to $10 billion at end-September from $9.7 billion at end-June.

Sixty-three percent of those loans are medium- to long-term, or those maturing in more than a year, with the remaining 36 percent pertaining to short-term credit.

Eighty-one percent of the loans was taken out by the private sector.

The major beneficiaries were public utilities at 21.3 percent; merchandise and service exporters, 15.4 percent; and producers or manufacturers, including oil companies, 14.7 percent.

Gross disbursements during the third quarter increased to $11.6 billion from the previous quarter’s $8.1 billion. The bulk of loan releases had short-term maturities, 74.3 percent of which was for working capital requirements.

FCDU deposit liabilities increased by two percent to reach $26.2 billion at end-September from $25.6 billion at end-June. The loans to deposit ratio slightly improved to 38.1 percent from 37.9 percent in the second quarter.

Ninety-eight percent of the deposits were held by residents.

source: interaksyon.com

Banks rediscount 82% more peso loans at end-August

MANILA – Banks liquefied 82 percent more of their outstanding loans at end-August, thus allowing them to increase lending.

In a statement, the Bangko Sentral ng Pilipinas said the amount of rediscounted peso loans in the first eight months of the year surged to P29.349 billion from a year ago’s P16.108 billion.

Of this year’s total amount of rediscounted loans, 75.4 percent went to commercial credits, 3.2 percent to agricultural and industrial credits, and 21.4 percent to other credits consisting of other services (8.4 percent), capital expenditures (6.5 percent), housing (4.2 percent) and permanent working capital (2.3 percent).

Availments of the BSP’s dollar loan rediscounting facility by 10 commercial banks however fell 21 percent to $123.1 million this year from $155.9 million in the same eight-month period last year.

The dollar rediscounting facility benefited 28 exporters.

For this month, the BSP set the peso rediscount rate at 3.75 percent for all maturities effective July 30, 2012. This is in line with the Monetary Board’s decision last July to cut its overnight borrowing rate to the same level.

For the dollar rediscounting window, the rate is set at 0.23050 percent per annum. This is based on the London Inter-Bank Offered Rate at end-August.

source: interaksyon.com