Vietnam Banks Disburse US$8.99Bln of Subsidized Loans So Far

Domestic credit institutions and banks reportedly had pumped VND151.9 trillion (US$8.99 billion) of interest-subsidized loans into the economy as of March 20, up VND7,591 billion or 5.26 per cent from the previous week, the State Bank of Vietnam, the country’s central bank, has reported.

 

Governor of the SBV Nguyen Van Giau said in a statement that state-owned banks and central credit funds had loaned VND115,659 billion (US$6.84 billion), up 0.98 per cent from the previous week.

 

Joint stock banks had provided VND31,731 billion (US$1.87 billion) and foreign banks and joint-venture banks the remaining VND4,513 billion (US$267 million), up 18.2 per cent and 53.59 per cent, respectively.

 

By the end of this month, domestic banks expect to lend companies a total of VND250 trillion (US$14.79 billion) under the ongoing subsidized loan program, Giau said, predicting credit growth rate of 2.8 per cent-3 per cent for the whole banking system in March.

 

The Governor also forecast that total outstanding loans of Vietnamese banks in 2009 may increase by 21 per cent-23 per cent on-year at maximum.

 

Minister of Planning and Investment Vo Hong Phuc told local lawmakers last week that Vietnam’s GDP will likely slow to 3.1 per cent in the first quarter with a trade surplus of US$1.647 billion. (Vietnam Economic Times, Labor, SBV)