The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), has approved in principle the offer of International Finance Corporation (IFC) to provide a cross-currency swap facility worth between US$200m and US$300m to local small- and medium-sized enterprises (SMEs).
BSP deputy governor Amando M. Tetangco, Jr. said the monetary authorities gave the go ahead to the IFC offer to address "currency mismatch," which has caused some of the local firms to cease trading in the aftermath of the 1997 financial crisis.
IFC is the investment arm of the World Bank, which provides loan or equity to private corporations.
Tetangco said the final approval by the Board will be given once IFC and local borrowers have agreed the amount that will be lent under the cross currency programme.
