The second half of the year is the time banking needs speed up lending to finish the year’s target of 12% in credit growth.
The second half of the year is the time banking needs speed up lending to finish the year’s target of 12% in credit growth.
. Aiming to credit growth target
Banking of the whole country targets a credit growth of 12% in 2013. However, the figure in the first half of the year is only 3%. Then, the figure to fulfill in the second half is 9%.
In Khanh Hoa Province, the total loans till end June reached VND23,250 billion, increasing by 5.68% over the beginning of the year. The loans for production and business made up 85% of the total. “Credit growth of Khanh Hoa Province in the first half of 2013 is nearly 6%, twice as much as the figure of the whole country. Khanh Hoa Province is expected to reach the target of 12% in the end of the year as last six months is the best time for increasing credit”, said Doan Vinh Tuong, director of the State Bank’s Khanh Hoa Branch.
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At present, interest rates which have decreased sharply no longer restrain credit. The main reason is the weakness in capital absorption of the economy.
Hoang Minh Hung, director of Vietcombank – Nha Trang Branch, said, “We’ve offering credit packages but few businesses made loans because they are in stagnancy.”
Nguyen Xuan Huy, director of Agribank – Khanh Hoa Branch, revealed, “We have VND1,500 billion for lending but loans can be given to businesses meeting conditions.”
. Efforts to reduce lending interest rates
Implementing solutions to businesses’ difficulties, credit institutions have made efforts in lowering lending interest rates.
More than 5,300 borrowers have enjoyed preferential credit packages at 7.5% - 11% per year to VND and 3.5% - 5.4% per year to USD. In the first six months of the year, 975 businesses and nearly 4,200 individuals and households have been reduced top interest rates to 13% per year. In the whole province, loans with interest rates from 11% per year and below made up 51.2% (VND11.818 billion). However, 13.8% of loans are suffering 13% - 15%. To support businesses, the State Bank – Khanh Hoa Branch suggested commercial banks cutting cost to slash maximum lending interest rates to 13% per year.
T.T
