MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) reported Monday that total rediscounting loan availments by bank institutions plunged nearly 73% in the first six months of the year.
In a statement, the BSP said loans under the Peso Rediscount Facility fell to P11.77 billion in January to June 2011 from P43.3 billion in the same period last year.
Out of the total availments, 68.1% went to commercial, 7.5% to agricultural and industrial, and 24.4% to other credits consisting of capex and other services, permanent working capital, housing and microfinance.
The BSP said bank availments of loans under its Exporters Dollar and Yen Rediscount Facility rose 89.9% to $103.1 million during the first half from last year's $54.3 million.
The BSP extends rediscounted loans to banks in need of immediate cash to meet consumer demand for credit. These loans are backed by the banks' collectibles.