MANILA, Philippines - Loans granted by banks’ foreign currency deposit units (FCDU) rose by four percent in the third quarter, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
As of end-September, some $6.6 billion in outstanding loans were granted by banks’ FCDUs, a four percent increase from the end-June 2011 level of $6.3 billion.
This resulted in overall net loan disbursements of $246 million, amid a positive business sentiment and a favorable interest rate environment.
The bulk or 60 percent of the outstanding FCDU loans were medium- to long-term loans (more than a year), while the rest were short-term accounts (less than a year).
Loans to resident borrowers, mainly those from the private sector, hit $5.3 billion, representing 80.3 percent of the total portfolio.
In the third quarter, gross disbursements amounted to $3.5 billion. Major loan releases went to companies in the financial services and manufacturing and export sectors.
FCDU deposit liabilities dropped by 3.4 percent to $24.6 billion from the end-June figures.