SBV: Q1 Credit Growth Up 2.67 per cent from end-2008
Total outstanding loans pumped by domestic credit institutions into the domestic economy in the first quarter this year increased by only 2.67 per cent against the end of 2008, the State Bank of Vietnam, the country’s central bank, said on its website.
Of those, VND loans rose by 3.9 per cent while foreign currency lending decreased by 2.24 per cent, the SBV said, adding that deposits in March soared by 3.4 per cent from December, compared with growth of 0.44 per cent at the end of February.
No loan or deposit values have been given.
The 2.67 per cent credit growth rate also proves to be a low figure considering that the conditions for loaning are favorable, while commercial banks have been pushing up loaning.
In January 2009, loans in foreign currencies increased 1.91 per cent, while they decreased by 2.69 per cent in February over the end of 2008. By the end of the first quarter of 2009, the decrease slowed to 2.24 per cent.
Analysts say they have learned from businesses’ shareholders’ meetings or business reports that enterprises are reluctant to borrow, or they tend to convert foreign currency loans into VND loans.
The SBV forecast that total outstanding loans of Vietnamese banks in 2009 may increase by 21 per cent-23 per cent on-year at maximum.
As of April 3, local banks and finance companies had already disbursed VND202.131 trillion of subsidized loans. (SBV)
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