Central bank says credit grew 17%

Vietnam's central bank said on Tuesday credit grew by 17.01 percent in the first six months of 2009, a tad lower than the pace in the same period last year of 17.53 percent.

The bank's first half report did not reveal the value of loans in the January-June period but it said bank deposits rose 16.2 percent in the first half from the end of 2008, compared to a growth of 7.64 percent in the same period last year.

The report also said interest rates on dong corporate loans averaged 10-10.5 percent while the rates on consumer finance loans and credit card loans stood at between 12 to 16.5 percent.

Last month the central bank raised the target cap on annual credit growth this year to 30 percent, from an initial projection by the central bank of 21 to 23 percent, as it encouraged more lending to support the weakened economy.

Vietnam 's economy grew an estimated 3.9 percent in the first six months from a year earlier, slowing from annual growth of 6.5 percent in the same period last year, the government said last week.

vietnews, Reuters

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