HCM City credit growth rebounds in Q1

Thursday, Mar 31, 2022 16:54

A Sacombank’s office in HCM City. — Photo courtesy of the bank

HCM City’s credit growth has rebounded, growing by 3.65 per cent as of the end of March, up 13.1 per cent year-on-year, according to the State Bank of Viet Nam’s HCM City branch.

Nguyen Duc Lenh, deputy director of the branch, said credit growth had rebounded as the pandemic had been put under control and the economy returned to normal.

He added that credit growth was expected to give extra leverage to post-pandemic economic recovery.

The banking sector would continue to offer credit support programmes to help firms restore production based on the guidelines and regulations of the Government and the central bank.

The measures include debt restructuring, interest rate exemption and reduction.

Commercial banks in the city have provided 1,851,864 customers with credit support programmes worth VND3.2 quadrillion (US$139.1 billion), according to Lenh.

As of the end of February, the city’s total outstanding loans were estimated at more than VND2.9 quadrillion ($126 billion), up 12 per cent year-on-year.

In addition, outstanding loans provided by the HCM City-based Viet Nam Bank for Social Policies reached VND7.186 trillion as of February, up 2.9 per cent year-on-year.

Outstanding loans for addressing unemployment and sustainable poverty reduction accounted for the highest, about 57 per cent of the total outstanding loans provided by the Viet Nam Bank for Social Policies.

In addition, the foreign exchange rates remain stable in line with the central bank guidelines.

The central bank has increased its exchange rate between the dong and the US dollar by 0.08 per cent as of the end of March, while the exchange rate at commercial banks was up by 0.35 per cent.

Non-performing debt is well controlled below the prescribed level, he said. Commercial banks continue to promote e-banking services.

Meanwhile, deposit mobilisation by credit institutions in HCM City grew by 1.29 per cent as of February 25.

Deposits in dong were up by 1.3 per cent for the year, while deposits in foreign currencies were up 1.24 per cent.

Experts said credit growth had rebounded on surging capital demand and firms ramping up production.

They recommended that the Government and central bank continue offering more stimulus packages, accelerate public investment disbursement, and remove challenges to boost credit growth.

The central bank plans to raise the country’s credit growth target to 14 per cent this year, compared to 12 per cent last year. — VNS

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