Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno announced today that as of end-June 2019, outstanding loans granted by Foreign Currency Deposit Units (FCDU) of banks stood at US$17.5 billion, higher by US$676 million (4 percent) from the end-March 2019 level of US$16.8 billion as disbursements exceeded principal repayments. The growth in loans may be attributed to borrowing firms’ higher working capital requirements as well as banks’ lower interest rates.
Year-on-year, FCDU loans grew by 11.6 percent or US$1.8 billion (from the end-June 2018 level of US$15.7 billion).
As of end-June 2019, the maturity profile of the FCDU loan portfolio remained predominantly medium- to long-term debt [or those payable over a term of more than one (1) year], which represented 78.1 percent of total, higher than the 75.6 percent level as of end-June 2018.
The bulk of outstanding loans went to the following resident industries: towing, tanker, trucking and forwarding (23.7 percent); merchandise and service exporters (16.4 percent); public utility firms (8.3 percent); and producers/manufacturers, including oil companies (4.3 percent).
Gross disbursements in the second quarter of 2019 reached US$16.7 billion and were 6.5 percent higher than the first quarter of 2019’s figure due to borrowing firms’ higher working capital requirements and availment of loan by a government corporation in the power sector. Similarly, loan repayments were higher by 3.5 percent, thus, resulting in overall net disbursements.
FCDU deposit liabilities stood at US$41.3 billion, higher by US$1.4 billion (3.4 percent) from US$40 billion as of end-March 2019, 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 increased by US$3.4 billion (9 percent) from the previous year’s US$37.9 billion level.
Source: Bangko Sentral ng Pilipinas (BSP)