Vietnam 2010 Credit Growth Likely Below 20%: Senior Official
Vietnam is likely to curb credit growth below 20% in 2010 as total outstanding loans of local banks soared only 1.4% by end-Feb, the chairman of the National Financial Supervisory Committee Le Duc Thuy predicted.
With such low credit growth, the country will realize its targeted economic growth of 6.5% this year, Thuy, also the former Governor of the State Bank of Vietnam, said at a press briefing on Mar 3.
Thuy was quoted by the Thanh Nien newspaper as predicting the consumer price index to rise 4% in the first quarter, extending the whole-year index by between 8%-9%.
He added that the SBV will soon allow commercial banks to provide short-term loans to clients based on negotiable interest rates, calling on the central bank to gradually loosening the monetary policy.
The SBV late last month permitted local banks to offer medium and long-term loans with negotiable interest rates in order to improve bank profit margins and liquidity and put an end on a practice of unlawful lending agreements.
Negotiable lending interest rates are currently being applicable to loans in U.S. dollars and for credit cards and consumer needs. These rates are allowed to range between 16% and 17% per annum.
The government’s General Statistics Office has forecast that Vietnam’s economy would expand between 5.7% and 5.9% in the first quarter. (Thanh Nien, CafeF)
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