The Monetary Board (MB)  has announced that the additional 25 percent Single Borrowers’ Limit (SBL) available to banks and quasi-banks which can be tapped to finance Public-Private Partnership (PPP) projects has expired on 28 December 2016.

The SBL is intended to limit the credit exposure to a single client to a maximum of 25% of a bank’s net worth, as imposed by the BSP on its supervised entities starting 2004 in keeping with sound risk management. 

According to the MB, sufficient feasible funding alternatives for PPP project proponents are already available in the market. The ceiling on borrowings includes loans, as well as securities underwritten by universal banks and investment houses unsold after 90 days.

Republic Act 10641 signed in July 2014 allowed the full entry of foreign banks in the Philippines, rationalizing the restrictions on lending to subsidiaries and affiliates of banks to support the financing of productive sectors and projects that form part of the priority programs under the Philippine Development Plan and the Public Investment Program.