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Credit growth reaches 5.8%

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Credit growth in the first five months of this year reached 5.8 per cent, Deputy Prime Minister Vương Đình Huệ said.

Credit growth in the first five months of this year reached 5.8 per cent. - chinhphu.vn

 

During a session to answer the questions of National Assembly deputies’ on several socio-economic issues on Wednesday, Huệ said that loans in the period focused on priority sectors involved in agricultural businesses, firms producing goods for export, small- and medium-sized enterprises, enterprises operating in auxiliary industries as well as hi-tech enterprises, including start-ups.

The credit growth was lower than the 6.53 per cent rise in the first five months of 2017 but higher than that of the same period in the previous years.

Right at the beginning of 2018, based on economic growth and inflation control targets, State Bank of Việt Nam (SBV) set this year’s credit growth at 17 per cent, lower than 18.17 per cent in 2017.

Besides asking credit institutions to target lending to the priority sectors, SBV has so far directed them to avoid too much focus on real estate and securities customers and maintain credit growth in the sectors within safe limits.

Credit institutions must also keep a close watch on lending to the sectors, continuously review and assess the progress of realty projects and their developers’ financial condition, particularly as it relates to their collateral assets, and have measures in place to deal with any defaulters.

Besides careful evaluation and processing of lending applications, the institutions have been also told to monitor borrowers to ensure that they refrain from using consumer loans for investment in property or securities.

“Credit expansion should go hand in hand with strict supervision to ensure loans are used for their intended purpose and do not add to bad debts,” SBV said.

 

Source: VNS

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