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Banks pushing up loaning again
After a long period of providing loans in dribs and drabs, banks have been pushing up loaning, especially loans to fund import-export deals.
After a long period of providing loans in dribs and drabs, banks have been pushing up loaning, especially loans to fund import-export deals.
Truong Van Phuoc, General Director of Eximbank, said that with the credit growth rate of 17% only (the allowed limit is 30%), the bank is trying to push up loaning to fund import-export deals, raising the loaning limit from VND2tril to VND5tril.
Asia Commercial Bank (ACB) has announced it will reserve another $30mil to fund import-export activities, raising the total sum of capital for import-export activities to $50mil.
In early September 2008, the Bank for Agriculture and Rural Development (Agribank) decided to provide VND3tril in capital to enterprises to help them collect, process and export coffee from the 2008-2009 crop in the central provinces and Central Highlands. Prior to that, the bank announced $1tril worth of loans to help enterprises purchase tra and basa fish from farmers; VND10tril worth of capital to fund purchases of summer-autumn rice; and VND4tril to fund imports of fertiliser.
Agribank’s representative said that the bank is considering raising the rate of agricultural loans from 70% of total outstanding loans to 75%.
Techcombank has also announced VND4-5tril worth of loans to fund the purchases and processing of rice, coffee, cassava and cashew nuts at soft interest rates, 0.5-1% lower than the normal interest rates for VND loans, and 2-2.5% lower for US$ loans.
Commercial banks have pushed up loaning again as the State Bank of Vietnam decided to maintain the basic interest rate at 14% per annum for September, the exchange rate has become more stable after fluctuating for a long time, and the State Bank decided to pay higher interest rates on compulsory reserves.
Tran Bac Ha, Chairman of the Bank for Investment and Development of Vietnam (BIDV), said that the bank is pushing up loaning as the demand for capital is increasing, especially loans to fund import-export activities. BIDV has three times slashed lending interest rates so far this year and raised the credit limits for priority sectors.
Le Quoc An, Chairman of the Vietnam Textile and Garment Group, said that the expansion of loans proves to be good news for import-export companies as companies need much more capital at the end of the year.
The business director of a garment company in HCM City confirmed that it is easier now to access bank loans. However, banks are still thoroughly considering the conditions of clients before giving loans. That explains why a lot of small- and medium-size enterprises are still lacking capital.
VNN
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