FCDU loans climb 7.1%

MANILA, Philippines — Foreign currency loans extended by local banks remained steady in the first nine months of 2017, the Bangko Sentral ng Pilipinas (BSP) said.

BSP Governor Nestor Espenilla Jr. said outstanding loans granted by FCDUs of banks went up 7.1 percent to $15 billion as of the end of September last year from the end-June level of $14 billion as disbursements exceeded principal 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 year, which represented 75 percent of the total.

Outstanding loans benefitted the following major resident borrowers or industries: towing, tanker, trucking and forwarding with $3.5 billion or 23.4 percent of the total, merchandise and service exporters ($3.2 billion or 21.5 percent), public utility firms ($1.7 billion or 11.2 percent), producers or manufacturers, including oil companies ($600 million or 4.1 percent), and management/holding and stock brokerage ($600 million or four percent).

Espenilla said gross disbursements of $14.4 billion during the reference quarter were higher by 2.8 percent vis-à-vis the previous quarter, with the bulk or about 88.5 percent having short-term maturities or those with original maturities of up to one year.

Loan repayments, on the other hand, fell 6.6 percent, resulting in overall net disbursements of $986 million.

 FCDU deposit liabilities were likewise higher at $39.1 billion from last quarter’s $37.2 billion, but the bulk of deposits or 97.4 percent continued to be held by residents.