Growth augers well for credit activities in 2015, says central bank.
Vietnam recorded 0.68 per cent credit growth during the first two months of 2015, the State Bank of Vietnam (SBV) announced on its website.
The central bank said that credit growth, attributable to efforts by the banking system, is a good sign for credit activities this year. The banking sector aims for 13-15 per cent credit growth for the year as a whole, a target that SBV Governor Nguyen Van Binh considers reasonable compared with other socio-economic targets.
Banks are now applying interest rates of around 7 per cent per annum for short-term loans and 9-10 per cent for medium- to long-term loans to borrowers in priority sectors. Normal borrowers are subject to respective rates of 7-9 per cent and 9.5-11 per cent. Banks have also offered preferential loans for the bank-business matching program and those piloting credit for agriculture, rural development and low-cost housing construction.
Since early March many banks have offered short-term deposit rates that are lower than the ceiling of 5.5 per cent per annum, as regulated by the central bank. Lending rates are therefore projected to fall by 1-1.5 percentage points this year.