MANILA, Philippines — Foreign currency loans granted by banks inched up by 0.5 percent to $15.82 billion as of end-December 2024 from $15.75 billion in end-September 2024, according to the Bangko Sentral ng Pilipinas (BSP).
In a statement, the central bank said the outstanding loans granted by banks’ foreign currency deposit units (FCDU) increased by $72.43 million as disbursements exceeded principal repayments.
The latest figure also rose by 4.3 percent or $658.56 million from the $15.16 billion seen in end-December 2023.
As of end-2024, the maturity profile of the FCDU loan portfolio remained predominantly medium to long-term debt or those payable over a term of more than one year that accounted for 77.1 percent of the total, slightly lower than the 77.3 percent from the previous quarter.
FCDUs are units of local banks or local branches of foreign banks authorized by the central bank to process transactions involving foreign currencies, mainly by accepting deposits and handing out loans.
The BSP said 62.7 percent of the total loans or $9.91 billion were extended to Philippine residents. Majority of the amount went to industries led by merchandise and service exporters (15.9 percent), towing, tanker, trucking, forwarding, personal and other industries (14.1 percent) and power generation companies (12.2 percent).
Meanwhile, gross disbursements fell by 54.9 percent to $9.81 billion in the fourth quarter from $21.77 billion as of end-September 2024 due to a foreign bank branch’s adjustment in its funding strategy for its affiliate.
Loan repayments as of end-December last year stood at $9.7 billion, 55.3 percent lower than the previous quarter’s $21.68 billion. These resulted in overall net disbursement.
FCDU deposit liabilities reached $55.46 billion, lower by 3.5 percent than the end-September 2024 level of $57.46 billion. The bulk of these deposits continued to be owned by residents, essentially constituting an additional buffer to the country’s gross international reserves.
In a separate statement, the central bank said that BSP Governor Eli Remolona Jr. and Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue, led a high-level bilateral meeting to exchange views and strengthen cooperation on various areas of central banking.
Hosted by the BSP, officials from both institutions discussed and shared insights on capital market development, digital payments and connectivity, digital banking as well as sustainable finance.
The BSP and HKMA also explored potential collaborative activities moving forward, to further broaden and enhance long-standing cooperation and bilateral ties.
