Bank Loans for Securities Investment Reduced to US$610 Mln

Total bank loans for securities investment had fallen to VND9.75 trillion (US$610 million) by the end of April 2008 from VND26 trillion in August 2007, Central Bank Governor Nguyen Van Giau answered the National Assembly deputies at the session last weekend.

 

Commercial banks have reduced much of their loans for securities trading after the State Bank of Vietnam issued the Instructive No.03 dated May 28, 2007, or one year ago, requiring credit institutions to limit lending to securities investors to below 3 per cent of their outstanding loans.

 

“Before I become the governor in August 2007, total loans for securities investment were really high, at VND26 trillion,” Giau told the National Assembly.

 

The loans for stock market account for about 0.78 per cent of total outstanding loans for the whole economy now.

 

Vietnam’s stock market key index fell 61.7 per cent from one year ago to close at VN414.1 at the end of May. (VnEconomy)