At the Bank Enterprise Connection Conference held on April 16th, representative of the State Bank of Vietnam (SBV) Hanoi branch said that credit institutions (CIs) in the city recorded a total mobilisation fund of about 3,180 trillion dong by the end of March 2019, up by 2.61 percent compared to the end of 2018. The total outstanding loans are estimated at 1,919 trillion dong, up by 2.59 percent compared to the end of 2018
Of the total outstanding loans by the end of the first quarter of 2019, the outstanding loans to agricultural and rural sector reached 145 trillion dong, accounting for 8.5%; outstanding loans to SMEs reached nearly 16.2%, and outstanding export loans reached 161 trillion dong, accounting for 9.5%.
The total amount committed to lending under the Bank-Enterprise connection programme of CIs in Hanoi accounted for about 25 percent of the total loan commitments of the whole country. Since the beginning of the programme, hundreds of dialogues to connect with businesses have been held with outstanding credit reaching over 523 trillion dong with popular lending interest rates of around six to 6.5 percent per annum for short-term loans and eight to nine percent per annum for medium and long-term loans.
In addition, the lending interest rates of the Bank-Enterprise connection programme are always lower than the common interest rates by one to 1.5 percent per annum. In particular, some businesses in priority areas and have good credit ratings enjoy more favourable lending rates at big commercial banks.
In 2018, CIs in Hanoi disbursed 120.421 trillion dong of loans to 10.310 businesses. The popular lending rates were also around six to 6.5 percent per annum for short-term loans and eight to nine per annum for medium and long-term loans. At the same time, CIs lowered interest rates for 12.105 trillion dong for the existing loans of 1,264 businesses.
According to the SBV’s leader, this helped Hanoi achieve credit growth rate of 16.94 percent in the end of 2018 with outstanding credit to SMEs reaching 311.696 trillion dong, thereby supporting the city’s overall economic growth to reach 7.37 percent in 2018.
It was reported that in the first three months of 2019, the outstanding credit of the whole economy increased by about 2.85 percent compared to the end of 2018. The credit source was focused on priority areas under the government’s policy. Specifically, lending to supporting industries increased by 3.63%, to businesses with high-technology applications increased by 7.25%, and credit to export sector grew by 3.5%.
