Bad debts account for 3.04pct of total outstanding loans as of August
August 23 2011
By : Eileen AJ Connelly; AP Personal Finance Writer
The State Bank of Vietnam (SBV) has reported the banking operations and monetary policy for the first eight months of this year whereby the total means of payment as of August 30 increased 9.16 percent from the end of 2010, lower than the rise of 19.87 percent and 16.41 percent of the same period in 2009 and 2010 respectively.
The credit for the economy as of August 30 increased 8.85 percent over the end last year, lower than the rise of 16.9 percent of the same period in 2010 but equalling to 50 percent of the estimated credit growth for the whole year 2011 (15-18 percent).
Also according to the central bank, till the end of August, the credit for production sector was estimated to increase 14.79 percent, of which, credit for agriculture and rural areas surged 30.5 percent and credit for export soared 35.02 percent.
Notably, the credit for non-production field saw a fall of 16.95 percent, of which, loans for securities investment and trading posted a fall of 43.03 percent, property loans decreased 10.1 percent and consumer loans declined 23.12 percent.
SBV also said that currently, the dong interest rate on the interbank market was stable at lower than the central bank's regulating interest rate whereby the overnight interest rate is at 10.5-11 percent per annum (p.a.), and it is 11-13 percent p.a. for 1-and 2-week terms.
Till the end of August, 2011, some credit institutions have adjusted down the lending interest rate for some loans for common business and production to between 17-19 percent per year.
SBV also said that till the end of July, the bad debts of the whole banking system was 3.04 percent of the total outstanding loans in comparison with 2.16 percent in the end of last year.