MANILA – Foreign currency-denominated loans extended by banks declined by 0.8 percent in the first quarter of the year, according to data released by the Bangko Sentral ng Pilipinas.

The central bank said foreign currency deposit unit (FCDU) loans stood at USD15.44 billion at the end of the first quarter, down from USD15.56 billion in the fourth quarter of 2025.

Compared with the same period last year, outstanding FCDU loans also fell by 2.2 percent.

FCDU loans are foreign currency-denominated loans granted by FCDUs of local banks or local branches of foreign banks authorized by the BSP to conduct foreign currency transactions. These loans finance activities that require foreign exchange, including those of importers, businesses and individuals involved in foreign currency transactions.

Of the total outstanding FCDU loans, 67.6 percent, or USD10.44 billion, went to Philippine-based borrowers, while the remaining balance was extended to non-residents.

The BSP said the primary domestic borrowers were merchandise and service exporters, firms engaged in towing, tanker, trucking, forwarding, personal and other industries, as well as power generation companies.

The central bank added that most outstanding loans were medium- to long-term, with maturities exceeding one year.

As of end-March 2026, banks recorded USD8.25 billion in new loan releases and USD8.36 billion in loan repayments during the quarter.

Meanwhile, FCDU deposit liabilities rose by 1 percent to USD60.76 billion from USD59.82 billion in the fourth quarter of 2025.