Peso Rediscount Facility availments surge

January 13, 2019

Availments in the Bangko Sentral ng Pilipinas’ (BSP) Peso Rediscount Facility posted a big year-on-year jump in 2018 a clear indication that banks are lending more to their clients.

Data released by the central bank Thursday showed that total availments in the PRF reached PHP71.524 billion last year, a surge from the PHP1.591 billion in the whole of 2017.

The bulk or equivalent to 74.90 percent of the availment was classified as Other Credits or those allocated for Capital Asset Expenditures, Other Services, and Housing.

The balance of 25.08 percent was shared by the Commercial Credits and Production Credits.

On the other hand, there is still no availment under the Exporters Dollar and Yen Rediscount Facility (EDYRF).

These facilities were established in 2013 to aid banks improve their deposit mobilization capacities and increase the utilization of other funding sources.

Meanwhile, rates of these facilities as of January this year is based on the latest overnight lending rate plus term premia for the PRF while EDYRF rates are based on their respective 90-day London Inter-Bank Offered Rates as of December last year plus 200 basis and term premia for longer tenors.

Specifically, rate of the PRF loans with maturity between 1-90 days is 5.3125 percent while it is 5.3750 percent for those with maturity of 91-180 days.

Under EDYRF, loans with maturity of 1-90 days have interest rate of 4.80763 percent for the dollar and 1.92733 percent for yen.

For those with maturity of 91-180 days, rate of the dollar facility is 4.87013 while it is 1.98983 for the yen facility.

Loans with 181-360 days maturity has a 4.93263 percent rate for the US dollar facility and 2.05233 percent for the yen facility.