Vietnam credit growth hits 10.14% as of December 21
The banking system has been providing support for 590,000 customers, mainly in forms of debt restructuring or freezing and waiving debt payment with outstanding loans worth over VND1,000 trillion (US$43.31 billion).
Vietnam’s credit growth as of December 21 is estimated at 10.14% against the end of last year and up 11.62% year-on-year.
|Overview of the press conference.|
Vice Governor of the State Bank of Vietnam (SBV) Dao Minh Tu revealed the data at central bank’s press briefing held today [December 24]. Last year, Vietnam's credit growth reached 13%, while the SBV set a target of 14% growth rate for this year.
Meanwhile, as of December 18, the growth rate of M2, which measures money supply that covers cash in circulation and all deposits, increased 12.83% against the end of 2019 and 14.62% year-on-year, noted Mr. Tu.
Since the beginning of the year, the SBV has cut its interest rate caps four times, the moves which have encouraged commercial banks to provide loans at lower interest rates, with the latest made on September 30 by slashing 0.5 percentage points to the refinancing interest rate, discount interest rate, overnight lending rate, and interest via open market operations (OMO).
Accordingly, the refinancing interest rate is lowered from 4.5% per annum to 4%, rediscount rate from 3% to 2.5%, overnight interest rate from 5.5% to 5% and interest rate via OMO from 3% to 2.5%.
The SBV also lowered the interest rate cap to 4% annually from 4.25% for deposits with maturities of one month to less than six months.
Credit institutions have so far restructured debt payment schedule for 270,000 customers affected by the pandemic with total outstanding loans worth VND355 trillion (US$15.37 billion), while the banking system has been quick in providing support for 590,000 customers, mainly in forms of debt restructuring or freezing and waiving debt payment with outstanding loans worth over VND1,000 trillion (US$43.31 billion).
Loans with preferential interest rates of 0.5-2.5% lower compared to the pre-Covid-19 period have also been offered to 390,000 customers worth VND2,300 trillion (US$99.6 billion) since January 23.
According to the SBV, the bad debt ratio as of late October exceeded 2%, but “this is inevitable given the severe economic impacts from the Covid-19 and customers’ debt repayment capabilities greatly affected as a result,” noted Mr. Tu.
- Vietnam Gov’t allocates US$685 million in interest subsidy scheme for 2022
- UK, ADB set up US$134-million fund to help catalyze green financing in Southeast Asia
- Vietnam targets 70% of population to have bank accounts in 2022
- Rising petrol prices contribute US$385 million to state budget revenue
- Vietnam looks for UK support in finalizing financial regulations: NA Chairman
- Vietnam c.bank reportedly sells over US$10 billion from FX reserves
- Vietnam Deputy PM expects no disruption to petrol supplies
- Standard Chartered launches new head office in Hanoi
- Central Bank ready to meet market demand for foreign currencies
- C.bank expects Vietnam's inflation to stay below 4% in 2022
Nearly one million Vietnamese students sit national graduation exam
Vietnam welcomes international cooperation in IUU fishing
Vietnam elected to UNESCO Intergovernmental Committee
Vietnam Gov’t allocates US$685 million in interest subsidy scheme for 2022
Vietnam intensifies partnership with Mekong nations
Hanoi approves 33 projects worth US$250 million in 2021-2025
Vietnam's National Assembly to legalize commitments at COP26
Vietnam looks for UK support in finalizing financial regulations: NA Chairman
UK multinationals pledge long-term presence in Vietnam