Outstanding loans are expected to reach a whopping VND228 trillion (USD11.4 billion) this year, up 23.5% from a year earlier according to the State Bank of Vietnam (SBV).
The figure was said to be acceptable given the country’s current high interest rates.
Credit growth in the realty sector in the first ten months of this year were nearly the same as that in the whole banking system, SBV stated, noting that credit quality for real estate was secure.
Between January and October, total outstanding loans were recorded at VND224.843 trillion (USD11.24 billion), up 22.01% from the reported figure in 2009. Credit growth in the whole banking system was 23.87% during the ten-month period.
Vietnam Bank for Social Policy (VBSP) and Vietnam Development Bank (VDB) have provided soft loans to the realty sector.
VBSP is offering loans to poor households to facilitate their access to housing under the government’s demand plus loans to anti-flood house building projects in the Mekong Delta region.
Meanwhile, VDB provides soft loans to urban and housing projects belonging to sectors with credit preferences.
Background:
“Credit growth at commercial banks has slowed down this month due to high interest rates of between 17% and 20% per annum for the dong-denominated loans,” said Nguyen Phuoc Thanh, general director of Vietcombank.
SBV Governor Nguyen Van Giau previously estimated that the country’s credit growth would expand between 25% and 27% this year, compared to as high as 37% last year.
Source: dtinews.vn