LOANS granted by the foreign currency deposit units (FCDU) of banks slipped in the first three months of the year, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday.
Outstanding FCDU loans totaled $15.44 billion as of end-March, down 0.8 percent from $15.56 billion three months earlier. Loans also fell by a larger 2.2 percent compared to the $15.78 billion seen a year earlier.
FCDU loans reflected $8.25 billion in new loans and $8.36 billion in repayments during the January-to-March period.
FCDUs are sections of a local bank or foreign bank branch authorized by the BSP to engage in foreign-currency transactions.
The maturity profile of the BSP's FCDU loan portfolio remained mostly medium- to long-term, or payable over a term of more than one year. These comprised 77.1 percent of the total, slightly lower than the 79.2 percent recorded at the end of the previous quarter. Short-term loans accounted for the remaining 22.9 percent.
Local borrowers continued to account for the majority of outstanding FCDU loans, receiving $10.44 billion, or 67.6 percent of the total.
The bulk went to merchandise and service exporters ($2.75 billion or 26.4 percent); towing, tanker, trucking, forwarding, personal and other industries ($2.51 billion or 24.0 percent); and power generation companies ($1.85 billion or 17.7 percent).
Commercial banks remained the dominant providers of foreign currency loans, accounting for 83.5 percent of the total outstanding portfolio, while thrift banks accounted for 16.5 percent.
NIÑA MYKA PAULINE ARCEO
