Loans of Foreign Currency Deposit Units higher in 3rd Quarter of 2018

Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla, Jr. announced today that as of end-September 2018, outstanding loans granted by Foreign Currency Deposit Units (FCDU) of banks stood at US$16.1 billion, higher by US$419 million (2.7 percent) from the end-June 2018 level of US$15.7 billion as disbursements exceeded principal repayments.

Year-on-year, a growth in the portfolio of US$1.1 billion (from the end-September 2017 level of US$15 billion) was noted as disbursements outpaced repayments.

The maturity mix of the loan portfolio remained biased towards medium- to long-term debt [or those payable over a term of more than one (1) year], which represented 76.7 percent of total, higher than the previous year's 75.3 percent.

The bulk of outstanding loans went to the following resident industries: towing, tanker, trucking and forwarding (24.5 percent); merchandise and service exporters (19.6 percent); public utility firms (9.5 percent); and producers/manufacturers, including oil companies (3.7 percent).

Gross disbursements during the reference quarter reached US$18.1 billion and were 24.0 percent higher than the previous quarter's figure. Similarly, loan repayments were higher by 15.8 percent, thus, resulting in overall net disbursements of US$425 million.

FCDU deposit liabilities likewise increased by US$830 million to US$38.8 billion from last quarter's US$37.9 billion level, with the bulk (97 percent) continuing to be held by residents; these essentially constitute an additional buffer to the country's gross international reserves. Year-on-year, FCDU deposit liabilities decreased by US$280 million from the previous year's US$39.1 billion level.

Source: Bangko Sentral ng Pilipinas (BSP)