BSP Governor Amando M. Tetangco, Jr. announced that as of end-September 2012, outstanding FCDU loans stood at US$7.6 billion, down by US$167 million (or 2.1 percent) from the end-June 2012 level of US$7.8 billion due to net loan payments of US$465 million which were partly offset by upward audit adjustments of US$298 million. This development may be attributed to the low interest rate environment which has encouraged enterprises to obtain peso funding to reduce foreign exchange exposures, notwithstanding the strengthening of the Peso. Year-on-year, however, an expansion of 15.8 percent (or US$1.0 billion) in the FCDU loan portfolio was noted due to improved business sentiment arising from positive developments in the economy.
The maturity profile of outstanding FCDU loans was as follows: medium- to long-term (MLT) loans [or those payable over a term of more than one (1) year] represented 62.6 percent of total, up from 61.5 percent in the previous quarter, while short-term (ST) accounts [or those with original maturities of up to one (1) year] comprised the 37.4 percent balance.
Loans to resident borrowers (mainly the private sector) represented 82.2 percent of the total portfolio, with the following as major beneficiaries: public utility firms (27.0 percent); merchandise and service exporters (22.2 percent) and producers/manufacturers, including oil companies (14.7 percent) and others (18.3 percent).
Gross disbursements during the quarter amounted to US$3.5 billion with the bulk representing short-term loans.
FCDU deposit liabilities marginally decreased to US$25.7 billion (or by 0.09 percent) from the end-June 2012 level. The bulk of these deposits (97.9 percent) continued to be held by residents. The overall loans-to-deposits ratio slightly decreased to 29.5 percent compared to 30.2 percent as of June 2012.