Friday,  Jun 22, 2018,16:43 (GMT+7) 0 0
Vietnam’s credit growth reaches 6.16%
The Saigon Times Daily
Tuesday,  Jun 12, 2018,18:29 (GMT+7)

Vietnam’s credit growth reaches 6.16%

The Saigon Times Daily

The central bank said local banks had kept interest rates stable this year while further cutting lending rates for customers in priority sectors - PHOTO: THANH HOA

HCMC – Local banks’ outstanding loans as of May 31 had increased by 6.16% compared with the end of 2017, Tien Phong newspaper quoted a representative of the State Bank of Vietnam (SBV) as saying.

The central bank on June 11 noted that local lenders had kept interest rates stable this year while further cutting lending rates for customers in priority sectors.

Some State-run and commercial joint stock banks have offered lending rate cuts of 50 basis points per year to borrowers with good creditworthiness.

Lending rates currently average out at 6-9% per year in the short term and 9-11% per year over the long term. Reliable borrowers with a healthy financial status will be offered a lower rate of 4-5% per year. 

According to Pham Thanh Ha, head of SBV’s Monetary Policy Department, the central rate between the dong and the US dollar has advanced by 0.63% compared with the end of 2017, while that at banks has increased by 0.5%.

The nation’s credit growth rate is in line with macroeconomic developments. Banks have steered capital into production and business activities, especially in the priority sectors, with credit risks being placed under control, the central bank commented.

By the end of March, bad debts in the banking sector accounted for 2.18% of total outstanding loans, below the 3% target set by the National Assembly. From August 15, 2017 to the end of March, VND100.5 trillion in bad debt (US$4.42 billion) was settled under the National Assembly's Resolution 42 which allows special pilot settlement of bad debt at credit institutions.

From now until the end of this year, the central bank will continue its flexible management of open market operations and interest rates in tandem with macro balances, inflation and currency market.

Share with your friends:         
 
Business
World
Sport
Travel
 
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.