The Bangko Sentral ng Pilipinas (BSP) has agreed to extend United Coconut Planters Bank’s (UCPB) relief from the single borrowers limit (SBL) as pertains to San Miguel Corp.

The BSP’s Monetary Board has approved UCPB’s request last week, said sources.

UCPB exceeded the SBL ceiling in San Miguel but it was given relief by the BSP during its rehabilitation years. Banks in violation of the SBL rule have to pay penalties.

The reprieve or temporary exemption, however, expired when the bank’s rehabilitation program began.

The SBL limits lending of a bank to a single client to only 25 percent of their capital. Some banks have asked the central bank to relax the SBL for some corporations such as San Miguel.

UCPB has no direct shares in San Miguel but the bank owns 17.5 percent of the Coconut Industry Investment Fund (CIIF) Oil Mills Group, which in turn has control of the 14 oil-producing holding companies that own 25.6 percent of San Miguel.