Companies based in the Philippines took out more than $5 billion in 2009 to repay their debt or lend to other companies abroad.
Rosabel Guerrero, director of Bangko Sentral’s economic statistics department, said Philippine banks and companies were profitable enough last year to prepay some of their loans and lend to other companies overseas.
“It was a common practice among banks,” she said, referring to lending to one another in times of difficulties.
Data from Bangko Sentral showed that the other investment account posted a net outflow of $5.1 billion in 2009, a turnaround from the $771-million net inflow in 2008.
Bangko Sentral Deputy Gov. Diwa Guinigundo said the outflow was a result of the transactions between daughter companies here and parent companies abroad.
The Philippines posted a net outflow in the other investment account because the local market did not have the same tightness that other countries experienced last year, he said.
“There were loans extended by resident companies to non-resident firms,” Guinigundo said.
Local banks posted net loan repayments amounting to $1 billion last year while private companies recorded $740 million.
This was evident in the latest external debt report released by Bangko Sentral, showing that private sector’s external debt went down by over $2 billion to $11.4 billion last year from $13.5 billion in 2008, as repayments by both bank and non-bank borrowers exceeded loan availments.
Foreign entities also had net withdrawal of currency and deposit placements from local banks in the amount of $134 million and from private local companies in the amount of $404 million.
Local banks extended loans totaling $2.2 billion to companies and banks based in other countries during the period.
If not for the outflow in the other investment account, the country’s current account surplus would have exceeded $10 billion last year and further pushed the value of the peso and the gross international reserves. –Roderick T. dela Cruz, Manila Standard Today
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
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September –
5 Sept – Intl Day of Charity
7 Sept – Intl Day of Clean Air for Blue Skies
8 Sept – International Literacy Day
12 Sept – United Nations Day for South-South Cooperation
15 Sept – International Day of Democracy
16 Sept – International Day for the Preservation of the Ozone Layer
17 Sept – World Patient Safety Day
18 Sept – International Equal Pay Day
21 Sept – International Day of Peace
26 Sept – International Day for the Total Elimination of Nuclear Weapons
27 Sept – World Tourism Day
28 Sept – International Day for Universal Access to Information
29 Sept – International Day of Awareness of Food Loss and Waste
30 Sept – World Maritime Day
Monthly Observances:
Health, Safety and Sanitation Month
National Clean-up Month
Civil Service Month
National Peace Consciousness Month
Social Security Month
Rule of Law Month
National Teachers’ Month (Sept 5-Oct 4)
Weekly Observances:
Sept 17 – 23:
World Clean and Green Week
Week 2: Education Week
Week 4: Medicine Week
Last Week: National Family Week
Daily Observances:
Third Saturday:
International Coastal Clean-up Day
Third Monday: World Health Day
Last Friday: National Maritime Day
Sept 8: National Literacy Day
Sept 15: Philippine Medicine Day
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