P1.9T injected to financial system —BSP

Almost P2 trillion has been released to the financial system by the monetary easing measures by the Bangko Sentral ng Pilipinas (BSP).

“The BSP has injected approximately P1.9 trillion ( or $39.2 billion) in liquidity into the financial system,” BSP Governor Benjamin Diokno told reporters on Friday.

“This is equivalent to 9.6% of GDP (gross domestic product,” Diokno said.

The central bank chief earlier explained that  the cut in reserve requirement  — the amount of cash banks are required to hold in reserve — for universal and commercial banks of 200 basis points and interest rate reduction by 175 basis points has injected additional liquidity in the financial system.

The BSP also slashed reserve requirements for thrift banks and rural banks by 100 basis points.

“The amount [P1.9 trillion] includes the new provisional advance of P540 billion which is targeted to be released first week of October 2020,” Diokno said.

The central bank, last week, approved the request for a P540-billion loan of the government, to budgetary support amid the deficits due to the COVID-19 pandemic.

“The BSP is working hand-in-hand with the National Government to ensure that the coronavirus pandemic will leave little permanent scar on the Philippine economy and its people,” the BSP chief said.

Documents released by the Bureau of the Treasury on Wednesday showed that the national government's running debt balance was at a record P9.615 trillion as of end-August, 21.1% higher than the same month last year. -MDM, GMA News