HCMC’S CREDIT GROWTH IN AUGUST PUT AT 1%

Outstanding loans in HCMC last month rose by a slight 1% against the previous month, taking to 3.26% the city’s credit growth rate in the first eight months of the year, said the HCMC branch of the State Bank of Vietnam (SBV).

Bank loans in the city from January to August amounted to VND3,331 trillion, a 3.26% increase against the end of 2022 and a 5.62% rise over the same period last year. Of total outstanding loans, Vietnamese dong currency loans accounted for 94.7%, while foreign currency loans made up the remainder.

Short-term loans experienced higher credit growth than medium and long-term loans. Specifically, short-term loans edged by 4.92% versus the end of 2022, while medium and long-term lending rose by 1.88%.

These loans were primarily extended to businesses engaged in production, trade, services, and tourism, constituting 67% of the total outstanding loans in the city. The lending was carried out in conjunction with the disbursement of a financial aid package with low interest rates not exceeding 4% per year for eligible beneficiaries.

As of the end of August, 17,827 clients, including businesses, business households, and cooperatives, had been granted short-term loans in Vietnamese dong with incentive interest rates totaling VND188,000 billion. These included small and medium-sized enterprises, firms in supporting industries, hi-tech using enterprises, exporting businesses, rural agriculture enterprises, and those participating in the city’s investment stimulus program.

Around 25,000 borrowers had their debts rescheduled, with a total value exceeding VND34,000 billion. Lender banks also disbursed VND20,954 billion as part of a financial aid package with a two-percentage-point interest rate discount for 350 businesses operating in aviation, transportation, warehousing, manufacturing, tourism, accommodation, education, agriculture, forestry, and fisheries.

The branch of SBV in HCMC anticipates that the effectiveness of relief packages, coupled with recoveries in some business sectors and seasonal factors, will boost credit growth for the remainder of the year.

Source: The Saigon Times