Vietnam's credit growth rises 10.22% in 11 months

Vietnam's credit growth in the January- November period increased 10.22% compared to the end of 2013, the State Bank of Vietnam (SBV) announced on December 4 in its report on monetary policy and banking operations in the first 11 months this year.

Credit structure continues to shift towards sectors of Government's priorities such as small and medium sized enterprises, agriculture and rural development among others.

Illustration photo (Photo: Thai Thien)

This year, the SBV kept the credit growth target for the whole year at 12% - 14%.

According to the SBV, the total means of payment and deposit mobilisation in 11 months, both advanced over 13% against the end of 2013, of which deposits in Vietnamese dong (VND) was up 14.74% despite the lowered lending interest rates.

The central bank continues to ask commercial banks to reduce lending rates including old loans to less than 13% per year. To date, the interest rates for deposits and loans in VND have been slashed by 1.5% - 2% per year compared to the end of 2013, contributing to removing difficulties for production and business activities while ensuring the goals of curbing inflation and stabilising the monetary market.

The central bank will continue to closely monitor the market to assure the stability of the monetary market, interest rates and foreign exchange rates, and will sell foreign currency to intervene the market if necessary.

(Source: nhandan.org.vn)