3:26:29 PM | 1/10/2008
Commercial banks in Vietnam had lent a total VND299.472 trillion (US$18.15 billion) to small and medium companies as July 31 this year, accounting for only 27.3 per cent of the total outstanding loans of the entire economy, the State Bank of Vietnam’s Credit Department said Tuesday.
Of VND289.1 trillion lent in Jan-Jul, loans provided by state-owned commercial banks accounted for 47.7 per cent, loans by joint stock banks made up 47.07 per cent, loans by foreign banks’ branches represented 2.5 per cent, the department said.
Loans for agricultural sector accounted for 5.1 per cent of the total value of outstanding loans, loans for industrial production and construction sectors 38.51 per cent, trade and service sectors 56.39 per cent, the departmetn added.
The central bank noted that 23 per cent of small and medium enterprises which borrowed loans from commercial banks have good business operations, 73.2 per cent of SMEs have normal operations, and 3.8 per cent of them are facing difficulties.
Non-performing loans of SMEs are estimated at 3.64 per cent of the total loans of the banking sector, up 1 per cent from a year ago.
The central bank recently raised interest rates of compulsory reserves to 5 per cent and allowed use of t-bills of VND20.3 trillion to improve liquidity of local banks to lower lending rates for local businesses.
Le Xuan Nghia, a leading economist, head of the SBV’s Banking Development Strategy hailed the SBV’s move--a good but cautious move at this moment-- which will bring dual benefits to local businesses, banks and serve the target of curbing inflation.
The government of Vietnam plans to curb credit growth rate at below 30 per cent this year in order to curb galloping inflation to stabilize the macro economy. (VNS, SBV)
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