Vietnam’s credit growth doubles
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Bank credit growth from January 1 to June 15 was 5.1 percent, double the rate recorded in the same period last year.
The jump came despite the fourth wave of Covid-19 because the State Bank of Vietnam made monetary policy more flexible and directed banks to focus on funding manufacturing and reduce lending to sectors with high risks, its deputy governor, Dao Minh Tu, said Monday.
Average loan interests in April fell by 0.3 percentage points from December, he added.
The central bank has also directed banks to delay debt payment or lower or scrap interests on customers affected by the Covid-19 pandemic to help their business recovery.
Nearly 676,700 customers have seen the interests of their debts removed or reduced with a total outstanding loan of nearly VND1,278 trillion.
The bank will continue to pursue a flexible monetary policy until the end of the year keep inflation under control and support an economic recovery.
The pandemic has boosted demand for online payment. In the first four months, internet payment value surged 31 percent year-on-year.
Questions & Answers
Q.What is the primary reason for Vietnam's increased credit growth this year?
What is the primary reason for Vietnam's increased credit growth this year?
The State Bank of Vietnam implemented a more flexible monetary policy and directed banks to prioritise funding manufacturing. They also reduced lending to sectors considered to have high risks, which contributed to the growth.
Q.How has the central bank supported businesses affected by the pandemic?
How has the central bank supported businesses affected by the pandemic?
The central bank has directed banks to delay debt payments or to lower or remove interest charges for affected customers. This measure aims to aid their business recovery during the ongoing pandemic.
Q.How many customers have benefited from reduced or removed interest payments on their loans?
How many customers have benefited from reduced or removed interest payments on their loans?
Nearly 676,700 customers have had the interests on their debts either removed or reduced. These outstanding loans total nearly VND1,278 trillion, according to the deputy governor.
Q.Has the average loan interest rate changed recently?
Has the average loan interest rate changed recently?
Yes, average loan interests in April fell by 0.3 percentage points compared to December. This reduction was noted by Dao Minh Tu, the deputy governor of the State Bank of Vietnam.
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