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LOANS issued by foreign currency deposit units (FCDU) of banks went
up last year as more borrowers took advantage of a strong peso, the
Bangko Sentral ng Pilipinas (BSP) said Thursday.
In a statement, BSP Deputy Gov. Armando L.
Suratos said FCDU loans increased by 8.5 percent to $3.8 billion in
2007 compared with $3.5 billion in 2006.
“The continuing appreciation of the peso
against the US dollar attracted more FCDU borrowings,” Suratos
said.
An FCDU is a unit of an authorized local bank or
local branch of a foreign bank engaging in foreign currency
denominated transactions such as accepting deposits and lending in
foreign currency.
About 60 percent of the FCDU loan portfolio had
medium to long-term maturities amounting to $2.298 billion, up from
$2.207 billion in the previous year.
A rise in this type of borrowings reflects ample
liquidity and growing confidence to extend longer term money to
qualified clients.
Of the total loan outstanding, public utility
firms accounted for 20 percent, while commodity and service
exporters took up 21 percent, and manufacturers including oil
companies another 20 percent.
The private sector took up 96 percent of the
outstanding loans at $3.685 billion last year from $2.193 billion
the previous year.
About 83 percent of FCDU loans went to
Philippine residents at $3.163 billion, higher than the previous
year’s $3.108 billion.
By creditor bank, local banks accounted for
$2.880 billion and foreign banks at $0.951 billion.
In terms of deposit liabilities, the bulk or 94
percent of deposits were held by residents including overseas
Filipino workers.
Total deposit liabilities increased to $19.024
billion last year from $18.774 billion in the previous year.
-- Maricel E. Burgonio
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