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Banks inject VND480 trillion into economy in June

The Saigon Times

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HCMC – June saw commercial banks injecting VND480 trillion into the economy in the first five months of the year, a significant amount given the low capital absorption rate.

According to the State Bank of Vietnam (SBV), credit in the banking system in the year to the end of June had grown by 6% against the beginning of this year to nearly VND14.4 quadrillion.

June credit growth was 3.6%, way above the 2.4% rise recorded in May. This substantial growth aligns with the target set by the prime minister for the banking system to expand credit by 5% to 6% by the end of the second quarter of this year.

A significant contributor to this growth was a syndicated loan worth US$1.8 billion (over VND45 trillion) which Vietcombank, BIDV and VietinBank extended to the Airports Corporation of Vietnam (ACV) to fund component 3 of the Long Thanh International Airport project in Phase 3.

FiinRatings, the leading credit rating agency in Vietnam, said that the credit expansion was partially driven by the rising demand for corporate bond issuance. It predicted that the demand for loans would surge in the second half of the year due to the ongoing economic recovery.

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