Oliver 46 0 0 9 months ago 4 min to read

FCDU Loans Slip at the End of September

According to data released by the central bank on Thursday, loans from the foreign currency development unit (FCDU) decreased by 0.3 percent from end-June 2022 to end-September this year, totaling USD15.71 billion.

The Bangko Sentral ng Pilipinas (BSP) said in a statement that the decline in FCDU loans can be attributed to two factors: borrowers’ reduced demand for FCDU loans in light of foreign exchange volatility and rising borrowing costs. “The decrease in FCDU loans may be attributed to a gradual move in easing credit parameters and net tightening of overall credit standards of lender banks resulting in unchanged or deliberate lending operations and credit activity amid uncertainty in the economic outlook,” the BSP said.

FCDU loans decreased by 1%, or USD 164 million, from USD 15.8 billion in 2021.

The majority of the FCDU loan portfolio’s maturity profile was medium- to long-term debt or loans with terms longer than one year. This made up 78.5% of the total amount of FCDU loans still outstanding.

10 billion dollars worth of FCDU loans totaling about 63.7 percent of that amount were given to residents; of that amount, USD2.7 billion went to power generation firms, USD2.4 billion to exporters of products and services, and USD1.2 billion went to management/holding and stock brokerage.

“Gross disbursements in the third quarter of 2022 were USD14.6 billion and were 6.6 percent lower than the number for the second quarter, mostly as a result of a reduction in the funding needs of an associate overseas bank branch. Similar to loan repayments, which decreased by 8% from the prior quarter’s total to USD14.6 billion in the same quarter. Overall net disbursement was the result,” the BSP stated.

At the same time, FCDU liabilities decreased by USD 838 million from end-June 2022 to USD 45.8 billion at the end of September this year.

“The majority of these deposits (97.3 percent) are still held by citizens, thereby adding to the nation’s gross overseas reserves as a buffer. In comparison to the USD45.9 billion level at the end of September 2021, FCDU deposit liabilities fell by USD102 million (or by 0.2 percent) annually, the central bank continued.

QR Code

Save/Share this story with QR CODE


Disclaimer: This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

πŸ“© Need to get in touch? Feel free to Email Us for comments, suggestions, reviews, or anything else.


We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❀️GIVE A TIP. Send a small donation thru Paypal😊❀️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) πŸ›’ BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) πŸ‘ Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).


AFFILIATE PARTNERS
LiveGood
World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.


About Author

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x