FCDU outstanding loans slightly falls in Sept

OUTSTANDING loans granted by foreign currency deposit units (FCDU) of banks slightly fell to $15.67 billion as of end-september, a decrease of $44 million or by 0.3 percent from the end-june 2022 level of $15.71 billion.

The central bank said the decrease in FCDU loans may be attributed to gradual move in easing credit parameters and net tightening of overall credit standards of lender banks resulting in an unchanged or deliberate lending operations and credit activity amid uncertainty in the economic outlook. There is also the borrowers’ reduced demand for FCDU loans in light of foreign exchange volatility and rising borrowing costs.

Year-on-year, outstanding FCDU loans decreased by $164 million or by 1 percent from the end-september 2021 level of $15.8 billion.

As of end-september, the maturity profile of the FCDU loan portfolio remained predominantly mediumto long-term debt [or those payable over a term of more than one year, which comprised 78 percent of total.

FCDU loans granted to residents comprised 63 percent of total outstanding FCDU loans. Of the $10 billion outstanding loans to residents, majority went to power generation companies at $2.7 billion or 27 percent, merchandise and service exporters at $2.4 billion or 24 percent and management/holding and stock brokerage at $1.2 billion or 12 percent.

Gross disbursements in the third quarter of the year reached $14.6 billion and were 6 percent lower than the previous quarter’s figure mainly due to decrease in funding requirements of a foreign bank branch affiliate. Loan repayments in the same quarter, meanwhile, reached $14.6 billion, an 8 percent decrease from the previous quarter’s figure. These resulted in overall net disbursement.

FCDU deposit liabilities stood at $45.8 billion as of end-september, lower by $838 million or by almost 2 percent) from the end-june level of $46.6 billion.

The bulk of these deposits, or about 97 percent, continue to be owned by residents, essentially constituting an additional buffer to the country’s gross international reserves. Year-on-year, FCDU deposit liabilities decreased by $102 million or by 0.2 percent from the end-september 2021 level of $45.9 billion.