Uncertainty over the full extent of the pandemic’s adverse impact on the economy has resulted not only in less peso-denominated loans being underwritten by Philippine banks but in fewer dollar-denominated borrowings in the local market as well, according to latest data from the central bank.
In a statement, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said that, as of end-December 2020, outstanding loans granted by foreign currency deposit units of banks stood at $16.7 billion, lower by $614 million or 3.6 percent than the end-September 2020 level of $17.3 billion, as principal repayments exceeded disbursements.
Year-on-year, outstanding dollar loans decreased by $1.4 billi…
Keep on reading: Pandemic jitters dampen local firms’ demand for dollar loans, too