Foreign-denominated bank loans in the Philippines rose 0.2 percent to $15.78 billion in the first quarter of 2025 compared to the previous quarter, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The loans, known as foreign currency deposit unit (FCDU) loans, declined 1.8 percent year-on-year.
FCDU loans are extended by local banks’ FCDUs or local branches of foreign banks authorized by the BSP to engage in foreign currency transactions. They support economic activities requiring foreign exchange, such as importers, businesses, and individuals with foreign currency payables or needs.
Data showed that in the first quarter, 77.2 percent of FCDU loans were medium- to long-term (payable over more than one year), up from 77.1 percent in the previous quarter. Of the outstanding loans, $9.91 billion were extended to Philippine-based borrowers, with the remainder going to non-residents.
The main Philippine-based borrowers were merchandise and service exporters ($2.44 billion, or 24.6 percent), “towing, tanker, trucking, forwarding, personal and other industries” ($2.11 billion, or 21.3 percent) and power generation companies ($1.90 billion, or 19.1 percent).
Outstanding loans as of end-March 2025 included $7.66 billion in new loans and $7.72 billion in loan payments received during the quarter.
The reduction in FCDU loans coincided with a rise in foreign currency deposits.
Deposits to FCDUs reached an all-time high of $58.92 billion as of end-March 2025, up 0.5 percent year-on-year from $58.61 billion.
