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Keisha Ta-Asan - The Philippine Star
December 30, 2025 | 12:00am
A money changer in Quezon City displays $100 bills on November 13, 2025.
STAR / Michael Varcas
MANILA, Philippines — Foreign currency deposit unit (FCDU) loans declined by five percent to $15.13 billion in the third quarter from $15.93 billion in the previous quarter, driven by higher loan repayments relative to new loan availments, according to the Bangko Sentral ng Pilipinas.
The outstanding FCDU loans reflected $9.77 billion in new loans booked during the quarter, while loan payments reached $10.56 billion, resulting in a net decline in outstanding balances.
Despite the quarterly contraction, most FCDU loans continued to be extended to Philippine-based borrowers, which accounted for $9.59 billion or 63.4 percent of the total. The remaining balance was lent to non-residents.
Among domestic borrowers, merchandise and service exporters remained the largest recipients, with $2.51 billion or 26.2 percent of total outstanding loans.
This was followed by towing, tanker, trucking, forwarding, personal and other industries at $2.05 billion or 21.4 percent as well as power generation companies at $1.71 billion or 17.8 percent.
Most FCDU loans were medium- to long-term, with maturities exceeding one year. These accounted for 79.8 percent of the total, slightly higher than the 79 percent recorded in the previous quarter, indicating a continued tilt toward longer-term foreign currency financing.
On a year-on-year basis, FCDU loans declined by 3.9 percent, even as deposits in foreign currencies continued to rise. Foreign currency deposits grew by 5.7 percent to $60.73 billion from $57.46 billion a year earlier.
FCDU loans are foreign currency-denominated loans extended by FCDUs of local banks or local branches of foreign banks authorized by the BSP to engage in foreign currency transactions.
These loans are used to support economic activities that require foreign exchange, such as those of importers, exporters, businesses and individuals with foreign currency transactions.
