Buenaventura speaks: part 1

In a two part interview, Philippines Central Bank Governor, Rafael Buenaventura today speaks of the new Special Purpose Vehicle act and the impact it should have on reducing NPLs in the banking sector from 16%

How big a pool of NPLs do you envisage will be transferred to these special purpose vehicles

The total non-performing assets of the banking sector is roughly Ps600 billion or $10 billion. If we are able to transfer about a third of that in the first 12 months we would consider that a real achievement. The hopefully, as it becomes more successful, the more difficult NPLs will be worked out. But, if we can do a third, I believe that will be good enough.

What do you believe will be the composition of the NPLs transferred It is mainly going to be real estate-based

No, I...

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