Tuesday, March 12, 2013

P10 billion to the Bangko Sentral ng Pilipinas (BSP)

The government will infuse another P10 billion to the Bangko Sentral ng Pilipinas (BSP) this year enabling it to pay in full the central bank's P50 billion capitalization .

"We'll infuse P10 billion by year-end…And we'll infuse additional if needed," Finance Secretary Cesar Purisima told reporters at the sidelines of the Euromoney forum in Makati City Tuesday.

Under the New Central Bank Act of 1993, the national government is mandated to give the BSP P50 billion capitalization, P10 billion of which was given in 1996.

In 2011, the government gave the BSP another P10 billion while P20 billion was infused last year.

Last year, the central bank incurred a net loss of P86.31 billion due in part to its foreign exchange operations wherein it buys dollars to address volatility of the exchange rate.

Relatively, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr., in a separate interview at the sidelines of the same forum, said monetary officials are studying the need to increase BSP's capitalization.

"It will be part of the review of the existing provisions and the formulation of the proposed amendments that we'll be presenting to congress when ot convenes July," he said.

The central bank chief said the domestic economy has expanded and its requirements has increased compared to when the P50 billion capitalization was set about two decades ago.

No comments: