Central bank writes off P2.8 billion in past-due loans

The Bangko Sentral ng Pilipinas (BSP) has written off P2.8 billion in past-due loans in 2025 as part of its efforts to clean up legacy exposures and refocus on its role as lender of last resort. This move, detailed in the central bank's 2025 Annual Report, led to a 95.2 percent reduction in long-past-due accounts to P219.3 million by the end of 2025, down from P4.5 billion the previous year.

Consequently, total outstanding loans and receivables decreased to P92.4 billion from P96.9 billion as of the end of 2024. Principal collections skyrocketed to P1.8 billion in 2025, nearly six times higher than the P300.9 million recorded in 2024, largely due to the settlement of financial assistance loans and the recovery of past-due accounts amounting to P1.5 billion.

Additional P316.9 million came from current accounts, including central bank discount window facility availments and notes receivable certificates. The balance-sheet cleanup enabled the BSP to shift focus to strengthening its lender-of-last-resort function, providing temporary liquidity support to banks as needed. As of the end of 2025, 38 banks held active credit lines with the BSP, valued at P348.4 billion in combined loans.

Actual loan availments under the discount window facility were minimal at P60.1 million for the year, with all loans granted since 2014 collected on or before maturity. The BSP also accelerated the sale of acquired properties, generating P1.6 billion in estimated net income in 2025. The disposal of 424 properties with a combined net book value of P702.9 million resulted in P1.9 billion from the sale of a property in Dasmariñas City, Cavite, alone.

As of the end of 2025, the BSP's book value of acquired and other real properties stood at P11.4 billion. Collections from sales contract receivables totaled P405 million, with interest income at P94.5 million, and miscellaneous income included P231.5 million from realized profits on previously sold installment properties.