HCM CTY (VNS)— Banks in HCM City saw foreign currency loans decrease by 3.68 per cent in the first quarter, according to the State Bank of Viet Nam.
The central bank's HCM City branch said outstanding dong loans increased by 1.38 per cent in the period, meaning overall credit growth was a mere 0.26 per cent.
Outstanding foreign currency loans have begun dropping since last year after the authorities tightened such lending through the introduction of several new regulations.
Now lenders are allowed to provide foreign currency loans only to exporters who can demonstrate they have the wherewithal to repay in foreign exchange. Consequently, many firms, particularly importers, cannot borrow and have to buy from banks though they are always in need of foreign currency. — VNS