FCDU loans rise 16.14% at end-June
FOREIGN CURRENCY loans granted by Philippine banks grew in the first semester, with merchandise and service exporters still taking bulk of the portfolio, the Bangko Sentral ng Pilipinas (BSP) said.
Banks lent $14 billion under their foreign currency deposit units (FCDU) as of end-June, up 16.14% from the $12.05 billion posted in the first half of 2016.
However, that amount slid 2.4% from the $14.35 billion recorded in the first quarter.
The BSP said the decline from the previous quarter was due to principal repayments exceeding disbursements.
FCDUs are bank units duly authorized by the central bank to conduct transactions involving foreign currencies, mainly by accepting deposits and handing out loans.
Merchandise and service exporters took the largest loans in the first semester, totalling $3.2 billion.
This was followed by firms engaged in towing, tanker, trucking and forwarding, securing $3 billion loans; public utility firms with $1.4 billion; manufacturers including oil companies at $0.6 billion; and holding and stock brokerage firms at $0.5 billion.
Majority of the foreign currency loans were secured by Filipinos and local businesses at $9.148, 8.66% greater than the $8.419 billion incurred a year ago.
Non-resident borrowers meanwhile took out $4.853 billion as of end-June, 33.51% up from $3.635 billion seen in the same period in 2016.
By source on the other hand, funds borrowed from local commercial banks stood at $12.045 billion, while thrift banks approved $43 million. Foreign banks meanwhile granted $1.913 billion loans.
“The maturity mix of the loan portfolio remained biased towards medium- to long-term debt, which represented 75% of the total,” the BSP said.
Loans set to mature in more than a year, amounted to $10.501 billion. Short-term loans on the other hand amounted to $3.501 billion.
Loan repayments rose 10.1%, resulting in a overall net repayment of $347 million.
Moreover, dollar deposits saw a 7.34% uptick to $37.225 billion in the first six months of the year, from $34.679 billion a year ago, mostly held by residents.
Larger foreign currency deposits act as buffers against external shocks, supporting the BSP’s gross international reserves. – Elijah Joseph C. Tubayan
