|Customers check the interest rate at a bank in Ha Noi. — Photo economy.vn
HA NOI (VNS) — Deposit interest rates are set to rise as growth rate of deposits has been lower than that of credit, according to a report from the National Financial Supervisory Commission (NFSC).
In the latest report on macro-economic situations for May and the first five months of 2015 released this week, NFSC said that total deposits rose 0.98 per cent in the first quarter, in which deposits in the Vietnamese dong rose 1.9 per cent and deposits in foreign currencies fell 4.9 per cent.
Total outstanding loans, meanwhile, increased 1.7 per cent, in which outstanding loans in dong climbed 2.4 per cent and outstanding loans in foreign currencies dropped 0.9 per cent.
As a result, the loan to deposit ratio (LDR) rose to 84 per cent from 83 per cent in December 2014, of which LDR in foreign currencies climbed to 87 per cent from 83.4 per cent at the end of 2014.
Under the report, NFSC also said that it was difficult for the Government to mobilise capital from selling Government bonds, adding that the G bond winning rate was 64.5 per cent to date this year, completing only 31.7 per cent of the year's issuance plan.
According to the Ministry of Finance (MoF), this year it plans to issue VND250 trillion (US$11.52 billion) government bonds, including VND180 trillion ($8.29 billion) 5-year bonds, VND50 trillion ($2.3 billion) 10-year bonds and VND20 trillion ($921.65 million) 15-year bonds.
Among VND69.51 trillion ($3.2 billion) bonds issued in 4 months, the value of 5-year, 10-year and 15-year bonds were at VND42.15 trillion ($1.94 billion), VND11.17 trillion ($514.74 million) and VND16.18 trillion ($745.62 million) respectively.
Deputy Minister of Finance Vu Thi Mai said that MoF would closely monitor the market developments to have appropriate measures in place to ensure the successful mobilisation of VND250 trillion, but did not confirm the possibility of adjusting bond terms to match the market demand. — VNS