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Home  >>  Daily News  >>  Vietnam News >>  Capital Markets  >>  Foreign currency loans rise at Vietnamese banks

NEWS UPDATES 
13 August 2009

Foreign currency loans rise at Vietnamese banks

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The outstanding loans in foreign currency in July posted a rise of 1.2 percent, VNBusinessNews.com quoted State Bank of Viet Nam (SBV) as saying.

The adjustment down on lending rate of US dollar at banks has attracted the attention of corporate customers who just like buying foreign currency but not like borrowing foreign currency.

The lending rate of US dollar at banks fell from 4.5-6 percent (in May) and 4-6 percent (in June) to 3-5 percent in July. But, the risk on forex rate is still the big barrier for borrowers.

In a bid to ease the pressure on lending rate, commercial banks adjusted down the deposit rate to 1.1-2.5 percent in comparison with 1.24-2.65 percent that was being applied since the end of May.

Meanwhile, the interest rate of dong continues to increase to 8.24-8.62 percent as for deposit rate and at 8.5-10.5 percent for lending rate (excluding the subsidised interest rate).

However, according to the figure from SBV, the transparency of banks showed signs of recovery. Total deposits at banks increased by 2.75 percent month on month, notably, total deposits in dong posted a rise of 3.17 percent.

The credit growth in July also posted a rise of 2.15 percent (credit growth in dong was estimated to increase 2.35 percent), marking the first month when the growth of outstanding loan lower than the growth of deposit.

As for subsidised lending rate programme, to August 7, the total outstanding loans reached over 392.609 trillion dong. During the week from August 1 to 7, the total outstanding loans were over 3.502 trillion dong.

The lending rate is being kept stable at 3-5 percent at banks. So lending in foreign currency is attracting the attention of corporate customers with a stable growth in July.
 


 


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