Vietnam’s credit growth in dong estimated at 0.93pct
Vietnam’s credit growth in dong estimated at 0.93pct
A government release on some contents of the monthly regular cabinet meeting July 2012 released on late July 31 stated that the total credit growth still remained low and the credit growth in dong was estimated at only 0.93%. This is the latest updated figure on credit growth so far.
Earlier, at the preliminary conference on banking operations and tasks for the last six months of this year held on July 7, the State Bank of Vietnam (SBV) said till the end of June, credit growth (in both dong and foreign currencies) was 0.76 percent in comparison with the 8-10 percent target set by the central bank.
Regarding bad debt, the press release stated that the bad debt status of the commercial banks has not been adequately addressed and the balance of bad debt tended to rise recently. Monitoring report of the central bank’s inspectors said that till March 31, bad debts of credit institutions were more than 202 trillion dong, accounting for 8.6 percent of the total loans.
From July 15, the central bank asked commercial banks to reduce the lending interest rate to 15 percent per year for old loans. Currently, the lending interest rate for prioritised sectors (agriculture and rural area, export, supporting industry and small and medium d enterprises-SMEs) is popularly at 11-13 percent per year and the lending interest rate for other business and production sectors is 12-16 percent per year.
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