Vietnam’s credit growth hits 6.16% as of May 31

16:14 | 13/06/2018 Finance - Banking

Vietnam’s outstanding credit as of May 31 had risen by 6.16 percent against the end of 2017, the State Bank of Vietnam (SBV) has reported.

As of the end of March, bad debt accounted for 2.18 pct of total outstanding credit

The central bank’s deputy governor, Nguyen Thi Hong, said on June 11 that the average lending rates remained stable while credit for certain priority sectors saw positive progress.

She elaborated that the rate for loans at a number of commercial banks has been lowered by 0.5 percentage point for well-performing customers.

The current rate ranges from 6-9 pct for short-term loans and 9-11 pct for medium and long-term loans while the lending rate for customers with healthy finances is lower, at around 4-5 pct.

The central bank also reported that efforts to restructure credit institutions continued to be stepped up with difficulties in tackling bad debt having been gradually resolved and commercial banks basically having finalised their restructuring plans.

As of the end of March, bad debt accounted for 2.18 pct of total outstanding credit, the SBV said.

It added that more than VND100 trillion (US$4.4 billion) of bad debt had been resolved during the period from August 15, 2018 to the end of March 2018.

Theo NDO