Q1 domestic claims expand by 7.3%

The domestic claims for the first quarter of 2022 have expanded by 7.3 percent to P7,330.2 billion from P6,832.1 billion in Q1 2021, a survey shows over the weekend.

It said this growth was brought about by higher claims on the private sector and net claims on the central government.

The Other Financial Corporations Survey (OFCS) shows that in the first quarter of 2022, the private sector rose from a year ago, owing to the sector’s higher investments in equity securities issued by private nonfinancial corporations and more loans extended to households.

Moreover, the growth in domestic claims can also be attributed to OFCS’ higher claims on the national government, as evidenced by the sector’s increased holdings of government securities.

On the other hand, the OFCS’ claims on depository corporations declined in the first quarter of 2022 compared to the same period last year, mainly due to the sector’s lower bank deposits and decreased holdings of debt securities issued by banks.

Meanwhile, OFCS’ recorded higher net foreign assets in the first quarter of 2022, largely because of increased investments in debt and equity securities issued by nonresident entities.

It added that the expansion in the OFCS’ assets was funded primarily by their issuances of shares and other equity.

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