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VietNamNews

Short-term loan rates seen declining further in 2015

Update: December, 27/2014 - 10:06
The lending interest rate this year has declined by approximately two percentage points, which brings the rate to the level attained during the 2005–06 period. — Photo thanhnien
HA NOI (VNS) — Many credit institutions forecast that the interest rates of short-term loans in Vietnamese dong will continue to decline by approximately 1.3 percentage points next year.

This was revealed by a December survey on next year's inflation prospects. The survey was conducted by the State Bank of Viet Nam's Statistics and Forecast Department.

However, 20 per cent of credit institutions believed that the interest rate could increase next year.

SBV Governor Nguyen Van Binh shared in a meeting of the banking sector conducted this week that it would be difficult for the banking industry to maintain the current interest rates next year. The economy remains on the road to recovery, while the economic growth targets set for 2015 are higher than this year, which will boost credit demand.

The lending interest rate this year has declined by approximately two percentage points, which brings the rate to the level attained during the 2005–06 period.

The survey revealed that the exchange rate of the dong and dollar in the inter-bank market is forecast to increase by an average of 1.6 per cent next year.

The survey also showed that many credit institutions anticipate that the inflation in December next year will increase by 4.77 per cent against the same period in 2014. This expected rate is lower than the government's five per cent target set for 2015.

The institutions shared that the price adjustment of the goods managed by the state and the price volatility of goods, including oil, in the world market will be the main causes of inflation next year.

A change in monetary and fiscal policies as well as an imbalance in demand and supply are also forecast to affect next year's inflation.

Credit institutions also anticipated that GDP growth next year will reach 5.86 per cent, which is 0.34 per cent lower than the National Assembly's 6.2 per cent target. — VNS

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