BoB releases P2bn to banks as govt cash crunch spills over
Friday, December 06, 2024 | 2030 Views |
Taking action: Dekop PIC: PHATSIMO KAPENG
From December 11, the Primary Reserve Ratio or PRR, which is a proportion of deposits banks are required to keep at the BoB in order to manage liquidity or cash flows, will be reduced from a rate of 2.5% to zero.
The move will allow banks to have access to an additional P2.1 billion for lending activities, as a liquidity crunch first noted as far back as May, deepens.
Acting Agriculture Minister, Edwin Dikoloti, is right in saying opening an export-ready facility whilst Foot and Mouth Disease (FMD) is still spreading would risk getting the whole country blacklisted before a single carcass leaves the door.A ban like that would break the already stressed nation. So, the postponement, painful as it is, is the right thing to do. The local economy is being squeezed from both ends. FMD has already slammed the door...