Manila: Foreign-currency-denominated loans granted by banks went up by 0.9 percent in the second quarter of the year. Data released by the Bangko Sentral ng Pilipinas (BSP) late Tuesday showed that foreign currency deposit unit (FCDU) loans reached USD15.93 billion, up from the USD15.78 billion in the previous quarter.

According to Philippines News Agency, year-on-year, FCDU loans increased by 1.9 percent. FCDU loans are foreign currency-denominated loans extended by FCDUs of local banks or local branches of foreign banks authorized by the BSP to engage in foreign currency transactions. These loans support economic activities that require foreign exchange, such as importers, businesses, and individuals with foreign currency transactions.

Of the total outstanding loans, 63.5 percent or USD10.12 billion were extended to Philippine-based borrowers, while the rest went to non-residents. The BSP said major Philippine-based borrowers include merchandise and service exporters, towing, tanker, trucking, forwarding, personal and other industries, and power generation companies. Most of these loans were medium- to long-term, with maturities over one year.

Meanwhile, deposits to FCDUs went up by 10 percent to USD60.67 billion from USD55.16 billion last year.