BANKS increased their availments from the central bank’s rediscount window in June, with the credit going to commercial, production and other transactions.

Peso rediscount loans reached P21.854 billion last month, 80.99% higher than the P12.075 billion borrowed in May, the Bangko Sentral ng Pilipinas (BSP) reported Wednesday.

Total availments from January to June amounted to P107.653 billion, a surge from the P9.776 billion availed in the first semester of the previous year.

The central bank’s rediscount facility lets banks get their hands on additional cash by accepting a lenders’ collectibles as collateral for short-term credit.

The banks can then use the fresh money supply — either in peso, dollar, or yen — to hand out more loans to corporate or retail clients, as well as service unexpected withdrawals.

In a statement, the BSP said that bulk of the loans were used to fund other credits amounting to 67.32% — comprised of capital asset expenditures (43.6%), loans to other services (19.37%), permanent working capital (4.3%) and housing loans (0.05%).

Commercial credits meanwhile had a 32.66% share in the total availments, which banks used for importation (24.42%) and trading of goods and products (8.24%).

Production credits were at 0.02% of the total and went to loans for agricultural production.

On the other hand, the dollar and yen rediscount window catering to export firms remained untouched during the period.

Meanwhile, for this month, rates for peso rediscount loans remain unchanged.

Rediscount rates stand at 5.0625% for peso loans maturing in 90 days or less, while those with a 91- to 180-day term are priced at 5.125%.

These are based on the latest available BSP overnight lending rate plus a premium.

Dollar credit lines come with a lower rate of 4.31988% for one- to 90-day loans; 4.38238% for 91- to 180-day loans; and 4.44488% for 181 to 360-day loans.

Meanwhile, rates for yen loans declined to 1.9345% for one to 90-day loans; 1.997% for 91- to 180-day loans; and 2.0595% for 181 to 360-day loans.

These reflect the 90-day London inter-bank offered rate as of end-May plus 200 basis points plus term premia. — RJNI