Credit growth slow in Ha Noi

Tuesday, Aug 26, 2014 08:19

Cash transactions are conducted at a branch of Vietcombank in Ha Noi. Lending interest rates have fallen but many companies are still in difficulty. — VNA/VNS Photo Tran Viet
HA NOI (Biz Hub) — The outstanding loans of credit institutions in Ha Noi totalled about VND918 billion, or US$43.71 million, in August.

According to the municipal Department of Statistics, the amount increased 0.6 per cent over July, but fell 2.9 per cent over last December.

The total deposits in the capital reached nearly VND1.12 trillion, or $53.33 million, in August. This was up 0.6 per cent over the previous month and increased 6.8 per cent over the end of last year.

The lending interest rates have fallen, but stock market reports showed that many enterprises still suffered losses in the first half of this year. It will take more time for the companies and the economy to recover, market observers said.

In HCM City, outstanding loans grew 4.35 per cent in the first seven months of 2014, reported the Viet Nam Television (VTV).

Lending in the southern city increased 1.37 per cent in July alone, driven by prioritised sectors including agriculture and development of rural areas, exports, small- and medium-sized enterprises, high-tech firms and support industries.

Local banks saw redundant liquidity, but faced significant obstacles in finding borrowers earlier this year. However, municipal programmes linking banks and businesses have improved the lending situation in recent months.

Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam's HCM City branch, said the number of dissolved companies was about two-thirds the number of newly established firms, and that the charter capital of enterprises also increased this year.

But Minh warned that bad loans tended to increase in the city. Debts facing risks of capital losses amount to more than 7 per cent of the total outstanding loans in the city, compared with the previous levels of 4.6 to 4.8 per cent.— VNS

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