Vietnam Banks Extend Subsidized Loans to VND301.4T Since Early Feb

Banks and financial companies in Vietnam had added VND9.495 trillion (US$558.5 million) to the economy in the week ended May 21, up 3.25 per cent from a week earlier, raising the total subsidized loans to VND301.381 trillion since early February, the State Bank of Vietnam, the country's central bank, said.

State-owned banks and people’s funds extended subsidized loans to VND218.472 trillion, commercial joint stock banks loaned VND67.476 trillion, joint venture and foreign banks lent VND13.767 trillion, and financial companies VND1.665 trillion.

Banks and financial companies loaned VND64.797 trillion to state-owned companies, VND178.327 trillion to foreign-, private-invested firms, VND1.808 trillion to cooperatives and VND51.867 trillion to households and individuals, the SBV said.

For June, the SBV also decided to keep the benchmark interest rate unchanged, at 7 per cent/year, refinancing rate at 7 per cent/year, rediscount rate at 5 per cent/year and overnight interbank interest rate at 7 per cent/year.

The government is seeking approval from the National Assembly for its US$8 billion demand stimulus packages to ensure the economy to grow faster in the remaining quarters, state media said. (SBV)