Bank foreign currency loans dip slightly in Q1 2025

Foreign-currency-denominated loans extended by banks dipped by 0.2 percent in the first quarter of 2025, according to data released by the Bangko Sentral ng Pilipinas (BSP).

The BSP reported last week that outstanding loans issued by banks’ Foreign Currency Deposit Units (FCDUs) stood at USD15.78 billion in Q1 2025, slightly down from USD15.82 billion in the fourth quarter of 2024.

The total included USD7.66 billion in new loan disbursements and USD7.72 billion in loan repayments during the period. A year earlier, foreign currency loans amounted to USD16.07 billion.

“FCDU loans support economic activities that require foreign exchange such as importers, businesses, and individuals with foreign currency payables or needs,” said the BSP.

Of the total FCDU loans in Q1 2025, 77.2 percent were medium- to long-term, meaning they were payable over a period longer than one year.

Loans extended to Philippine-based borrowers amounted to USD9.1 billion, with the majority going to merchandise and service exporters, power generation firms, and businesses involved in towing, tankering, trucking, forwarding, and related services.

Meanwhile, FCDU deposits reached a historic high of USD58.92 billion as of March 2025—up 0.5 percent from USD58.61 billion in the same month last year.