Philippine Central Bank Warns of Short-Term Refinancing Risks
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The Philippine central bank warned companies to avoid an excessive reliance on short-term funding that could leave them vulnerable when refinancing debt.
“While increased risk-taking and leverage are not seen as excessive, the high level of debt incurred by corporates warrant close monitoring,” Bangko Sentral ng Pilipinas said in its annual Financial Stability Report released on Thursday. “Many corporates continue to face persistent funding mismatches where current liabilities exceed current assets.”