Vietnam Credit Growth Likely Up 24%-26% in 2010: Central Bank
Vietnam’s credit growth is likely to expand between 24% and 26% by end-2010, state media reported Thursday, citing the Monetary Policy Department under the State Bank of Vietnam.
The country’s broadest measure of total money supply, M2, is expected to grow between 20% and 23% this year while total deposits will rise 23% and 24%, said the department.
The department predicted interest rates to drop in the next months, but local banks won’t cut the rates sharply since a risk of inflation still exists.
The CPI has been slowdown since April, easing off concerns on inflation. Analysts predicted slower CPI will prompt local lenders to reduce interest rates and expand credit growth.
Statistics from the SBV showed that total outstanding loans of local banks increased 10.52% in H1, including a 3.06% rise in June, the fastest monthly pace since early 2010.
M2 went up 9.6% from end-2009 while total deposits were up 10.82%, the statistics noted.
In 2010, the SBV expects to curb total credit growth at 25% and total money supply at 20%. (VnEconomy)
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