Tuesday, December 6 2016

VietNamNews

Domestic lending drops off in January

Update: February, 03/2016 - 08:14

Under the survey, the institutions expected outstanding loans to surge to 21.4 per cent on average, much higher than the 14.57 per cent forecast in the same survey in late 2014. — Photo vietstock.vn

HA NOI (VNS) — Lending by January 20, 2016 declined 0.21 per cent against the end of last year, according to a report released by State Bank of Viet Nam (SBV) yesterday.

Despite the decline, the central bank said that lending in the first month this year was still more optimistic than the same period last year when the lending decreased 0.5 per cent.

According to experts, higher economic growth this year could push up the demands for capital.

Credit institutions have also been optimistic about the ability of businesses to take loans this year, according to a recent SBV survey.

Under the survey, the institutions expected outstanding loans to surge to 21.4 per cent on average, much higher than the 14.57 per cent forecast in the same survey in late 2014.

The central bank this year also targeted a credit growth of 18 per cent to 20 per cent, however, adding that the rate might be adjusted flexibly based on the actual situation, the same as in 2015.

In 2015, the central bank first targeted a credit growth rate of 13 per cent, but then adjusted it between 15 per cent and 18 per cent to meet the rising capital demands of the economy.

Under yesterday's report, the central bank also revised last year's official credit growth rate at 17.29 per cent, a little lower than the 18 per cent rate estimated at the end of December last year.

Last year, lending to the high-tech application sector, one of five prioritised sectors, surged sharply by 43 per cent year-on-year, seven fold higher than the average credit growth rate of the economy.

Loans to the agriculture and rural development sector, exclusive loans of the Social Policy Bank and Viet Nam Development Bank, last year also rose 13.32 per cent year-on-year. — VNS

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