Vista Land, BPI expect interest rates to remain low

Posted at 09/17/12 3:37 PM

MANILA, Philippines - Business executives expect interest rates to remain at record lows, boosting property markets and bank lending. 

Vista Land chief finance officer Ric Tan said housing loans will continue enjoying single digit interest rates. 

"The economic team has signified that the low interest rate regime will continue for the foreseable future so single digit rates on the mortgage market we expect for the next few years," he told ANC's Coco Alcuaz. 

He dispelled fears of a property glut, saying call center workers would likely take up condominiums, whose supply will triple in the next five years from levels seen a decade ago. 

"What we're seeing so far is no glut. What you can say possibly is there could be a potential glut if we're not able to sustain the momentum," Tan said. 

Meanwhile, BPI president Aurelio Montinola said agriculture and manufacturing companies are potential growth areas for bank lending.

"We recognize that agriculture should play a major part but just because there are opportunities in other areas, banks today are more involved in consumer lending, housing, they're also good priorities but I think at some point in time, people should again take a look at agriculture," Montinola said. 

The Monetary Board left its benchmark interest rate unchanged at a record low of 3.75% at its policy meeting last week. - ANC