FCDU loans rise 0.9% in Q2

Foreign-currency-denominated loans granted by banks in the second quarter of the year inched up by 0.9 percent to USD15.93 billion from USD15.78 billion in the previous quarter, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Year-on-year, foreign currency deposit unit (FCDU) loans were higher by 1.9 percent. These are loans extended by local banks’ FCDUs or branches of foreign banks authorized by the BSP to engage in foreign currency transactions.

The central bank said 63.5 percent, or USD10.12 billion, of the total outstanding loans went to Philippine-based borrowers, including merchandise and service exporters, trucking and forwarding firms, tanker operators, power generation companies, and other industries. The remainder was extended to non-residents.

Most of the loans were medium- to long-term, with maturities of more than a year.

Meanwhile, deposits in FCDUs rose 10 percent year-on-year to USD60.67 billion from USD55.16 billion.