MANILA, PHILIPPINES – The Bangko Sentral ng Pilipinas (BSP), the country’s central bank, said foreign direct investment (FDI) in the Philippines dropped by 71 percent in January 2015 to US$63 million.
The amount was lower than the US$905 million net inflows registered in the sam period last year.
All components recorded net inflows, particularly non-residents’ investments in debt instruments that were issued by local affiliates at US$167 million, accounting for the bulk of FDI during the reported period.
Equity capital registered net inflows of US$25 million as equity capital placements amounting to US$53 million more than offset withdrawals of US$27 million.
Equity capital placements originated mainly from the United States, Germany, Singapore, the Netherlands, and Japan.
These were channeled largely to wholesale and retail trade; manufacturing; real estate; financial and insurance; and professional, scientific and technical (mainly landscape/architectural services) activities. Meanwhile, reinvestment of earnings were recorded at US$70 million.
Meanwhile, the BSP announced the applicable Peso Rediscount Facility and Exporters Dollar and Yen Rediscount Facility (EDYRF) rates for the month of April 2015 and loan availments as of end March 2015.
The Peso rediscount rates for RW I and RW II are based on the applicable BSP one-month repurchase rate and overnight reverse repurchase rate, respectively, plus term premia for longer maturities per Circular No. 806 dated 15 August 2013. These rates have been in effect since 15 September 2014 and will remain until the policy rates are revised.
The EDYRF rates are based on the respective 90-day London Inter-Bank Offered Rate (LIBOR) as of 31 March 2015 plus 200 basis points plus term premia for longer maturities pursuant to Circular No. 807 dated 15 August 2013.
Under the Peso Rediscount Facility, the total availments of thrift and rural banks amounted to P75 million for the period 01 January to 31 March 2015, which is 81.8 percent lower than the P412 million total for the same period last year. Out of the aggregate availments for the period, 70.6 percent went to commercial credits, 5.2 percent to production credits and 24.2 percent to other credits consisting of housing (12.5 percent), CAPEX (7.6 percent) and permanent working capital (4.1 percent).
Under the EDYRF, total dollar availments of a universal bank for the period 01 January to 31 March 2015 amounted to US$0.4 million and benefitted one exporter. This represents a 78.9 percent decrease in availments compared to the US$1.9 million grants for the same period last year. There was no Yen-denominated availment under EDYRF for the subject period in 2015, nor for the same period last year. – BusinessNewsAsia.com