FCDU loans up to $11.583 B in Q2

MANILA, Philippines - Borrowings extended by banks’ foreign currency deposit units (FCDU) climbed to $11.583 billion in the second quarter from $11.379 billion in the first quarter of the year, the Bangko Sentral ng PIlipinas reported yesterday.

 “This may be attributed to the ample liquidity of the banking sector, the low interest rate environment, and the country’s growing external trade,” the BSP said.

“Sustained consumer demand and investor confidence in the economy, induced by the country’s stable and resilient macroeconomic fundamentals, also contributed to the expansion of the FCDU loan portfolio,” it said.

An FCDU is the bank’s unit authorized to engage in foreign currency transactions such as accepting deposits and extending loans.

BSP data showed 59.3 percent or $6.866 billion of the loans were payable in more than a year, while the remaining $4.717 billion were short-term borrowings.

The private sector accounted for the bulk or 72.3 percent of the borrowings at $8.374 billion, which were primarily channeled to utilities ($1.907 billion), producers and manufacturers including oil companies ($1.747 billion), and to exporters ($1.552 billion).

The central bank said gross disbursements in the second quarter went up to $14.2 billion from $12.9 billion in the first quarter. The bulk of the releases had short-term maturities and were mainly for working capital requirements, the BSP said.