HCM City bank credit grows at3.68 per cent amid Covid woes

Thursday, Sep 03, 2020 09:22

A bank branch in HCM City. Total outstanding loans of credit institutions in the city as of August 31 was up 3.68 per cent for the year, the lowest growth rate in a long time. — VNS Photo

Total outstanding loans of credit institutions in HCM City as of August 31 were worth VND2.38 quadrillion (US$102.5 billion), an estimated 3.68 per cent up for the year.

It represented a 0.4 per cent increase from the preceding month, according to the State Bank of Vietnam’s HCM City branch.

The 3.68 per cent growth represents the slowest rate in many years, but the SBV said cash flow is still being pumped into important areas of the economy.

Thus, lending to businesses in export processing zones and industrial parts increased by 12.7 per cent this year to VND180.58 trillion ($4.67 billion) as of July 31.

Banks also lent over VND2.014 trillion for 27 projects related to the city’s investment stimulation programme, and VND617 billion to firms participating in its price stabilisation programme.

Outstanding short-term loans in Vietnamese dong provided to the city’s five priority sectors (agriculture and rural development, production of goods for exports, small- and medium-sized enterprises, supporting industries, and high-tech enterprises) were worth VND176.26 trillion.

In response to the SBV’s Circular No. 01/2020/TT-NHNN that directed credit institutions to restructure loan repayments, waive and reduce the interest and fees and keep debt classification unchanged to support customers affected by COVID-19, credit institutions have supported 240,407 customers with total outstanding loans of VND583.15 trillion.

The SBV organised measures to mitigate difficulties faced by businesses based on feedback from authorities and business groups.

A representative of its city branch said the banking industry would continue to focus on solutions to overcome difficulties faced by businesses and help their revival based on guidelines issued by the Government, the central bank and the city People's Committee. — VNS

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