FCDU loans up in Q3 to $10 billion

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Foreign Currency Deposit Units (FCDU) loans reached $10 billion in the third quarter of 2013 on the account of positive business sentiment, according to the Bangko Sentral ng Pilipinas (BSP).

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BSP data showed that FCDU loans were 2.6 percent or $248 million higher than the end-June 2013 level of $9.7 billion

“The rising trend in outstanding FCDU loans during the past three quarters may be attributed to the growth in external trade and positive business sentiment due to strong macro-economic fundamentals,” BSP Governor Amando Tetangco Jr. said in a statement.

He added that the positive business sentiment was from trade financing and foreign exchange-related operating expenses.

Furthermore, the BSP data also showed that the maturity profile of outstanding FCDU loans were: medium- to long-term (MLT) loans represented 63.5 percent of total, while short-term (ST) accounts comprised the 36.5-percent balance.

MLT loans are those payable over a term of more than one year, while ST accounts are those with original maturities of up to one year.

Meanwhile, BSP data also showed that loans to resident borrowers, or mainly the private sector, represented 81.6 percent or $8.1 billion of the total portfolio.

It added that the loans’ major beneficiaries were public utility firms with 21.3 percent, merchandise and service exporters with 15.4 percent, and producers/manufacturers, including oil companies with 14.7 percent.

Moreover, BSP data showed that gross disbursements during the quarter rose to $11.6 billion from the $8.1 billion level a quarter ago.

The central bank explained that the bulk or 93.9 percent of new loans had short-term maturities, which were largely for working capital requirements.

On the other hand, the BSP added that FCDU deposit liabilities went up by $525 million, or 2 percent to $26.2 billion from $25.6 billion as of end-June 2013.

The bulk of the deposits or 97.7 percent continued to be held by residents, while the loans to deposit ratio slightly improved to 38.1 percent from 37.9 percent in the second quarter, central bank data showed.

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