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P21-B Bank Exposure of Hanjin Philippines is Very Insignificant, BSP Says

The Bangko Sentral ng Pilipinas (BSP) said that the P21 billion bank exposure of Hanjin Philippines is very insignificant.

The debt default of Hanjin Heavy Industries and Construction Philippines (HHIC) spawn fears of possible banking crisis.

Hanjin Philippines is the top employer and the biggest foreign investor at the Subic Bay Freeport.

Hanjin Philippines

Diwa Guinigundo, officer-in-charge at BSP explained that the banking industry of the Philippines stays stable despite the P21 billion bank exposures.

Guinigundo said that HHIC only represents 2.48 percent of the total foreign currency deposit unit (FCDU) loans and 0.24 % of total loans in the country’s banking industry.

“Based on our initial assessment, some banks are exposed to Hanjin, but relative to both total loans of the banking system and total FCDU loans of the banking system, their exposure is very negligible,” Guinigundo said quoted by Philstar.

Hanjin Philippines

Earlier this week, HHIC plead for rehabilitation at the Olongapo City Regional Trial Court after defaulting on $400 million loads from local banks.

Meanwhile, HHIC is already in debt of $900 with South Korean lenders.

Hanjin Philippines

The BSP OIC said that Hanjin could very well manage and control the case and explained that the P21-billion exposure is very negligible from the total banking system.

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