THE Bangko Sentral ng Pilipinas (BSP) reported that the country’s foreign currency deposit unit (FCDU) loans posted flat growth in the second quarter of 2025.
The data showed non-peso loans inched 0.9 percent to $15.93 billion in the second quarter of 2025 from $15.78 billion in the previous quarter.
The bulk of the loans, worth $10.12 billion (63.5 percent) were extended to Philippine-based borrowers, while the rest went to non-residents.
‘As of end-June 2025, outstanding loans reflected $6.76 billion in new loans and $6.64 billion in loan payments made during the reference quarter,’ the BSP said. ‘Year-on-year, FCDU loans grew 1.9 percent. The increase came alongside the 10-percent growth in deposits in foreign currencies, which reached $60.67 billion from $55.16 billion.’
According to the central bank, major Philippine-based borrowers were led by merchandise and service exporters whose loans grew 24.9 percent to $2.52 billion in the second quarter. This was followed by FCDU loans of towing, tanker, trucking, forwarding, personal and other industries; growing 22 percent to $2.22 billion.
The BSP said FCDU loans of power generation companies also posted double digit growth of 18.7 percent which brought their loans to $1.89 billion in the second quarter.
‘Most loans were medium- to long-term, with maturities over one year. These accounted for 79 percent of the total, higher than the 77.2 percent in the previous quarter,’ according to the central bank.
FCDU loans are loans denominated in a foreign currency, such as US dollars, extended by FCDUs of local banks or local branches of foreign banks authorized by the BSP to engage in foreign currency transactions. These loans support economic activities that require foreign exchange, such as importers, businesses, and individuals with foreign currency transactions.