PHILIPPINES' LIQUIDITY RISES, LOAN DEMAND FALLS

  Liquidity in the Philippines rose in
  December while loan demand and short-term lending rates fell,
  the Central Bank said.
      A bank official said M-3 rose 9.72 pct to a provisional
  149.80 billion pesos at the end of December from a month
  earlier for a year-on-year gain of 12.72 pct.
      She said short-term bank lending rates fell to an
  annualised 13.88 pct at the end of December, from 14.58 pct a
  month earlier and 19.82 pct at the end of December 1985.
      Poor loan demand was illustrated by a rise in commercial
  bank reserves, the official said.
      The bank official said commercial bank reserves were 22.19
  billion pesos at the end of December, when reserves required
  were 21.59 billion.
      She said the surplus of 597 mln pesos, compared with a
  deficit of 390 mln pesos a month earlier and a deficit of 1.64
  billion at the end of 1985, reflected political uncertainty in
  the last quarter of 1986.
      Reserve money, the total available to monetary authorities,
  was a provisional 52.58 billion pesos at the end of 1986. This
  was 5.19 pct up from 49.98 billion at the end of November and
  41.85 pct up from 37.09 billion in December 1985.
      The bank official noted M-3, which includes M-1 money
  supply, plus savings, time deposits and deposit substitutes.
  Was 132.88 billion pesos at the end of December 1985.
      M-1 money supply rose a provisional 17.3 pct to 42.86
  billion pesos at the end of December 1986 from 36.52 billion a
  month earlier. The year-on-year rise was 19.64 pct, up from
  35.83 billion at the end of December 1985.
  

