Hanoi: outstanding real estate loans reach VND24,839bil

Outstanding loans for the real estate sector had reached VND24,839bil ($1,461mil) by the end of October 2008, an increase of 23.5% over December 2007, accounting for 10% of total outstanding loans of local banks, according to the Hanoi branch of the State Bank of Vietnam (SBV).

According to Nguyen Hong Ky, Director of the Hanoi Branch of SBV, in the first ten months of the year, the total sum of outstanding loans dispensed by credit institutions in the city for the national economy was VND246tril, an increase of 32.2% over the same period of last year, and 20.9% over the end of 2007.

As far as real estate credit, commercial banks continued disbursing money for projects such as constructing offices for lease and developing urban areas. Outstanding loans in the field by the end of October 2008 had reached VND24,839bil, representing an increase of 23.5% in comparison with December 2007, or 10% of total outstanding loans of the banks in the capital city.

The ratio of non-performing real estate loans (NPL) of commercial banks in Hanoi in the first ten months of the year was 0.9%.

Regarding loans for small- and medium-size enterprises, by the end of October 2008, outstanding loans for the sector had reached VND75,452bil, an increase of 25% over the end of 2007, accounting for 30.6% of total outstanding loans of local banks. It is estimated that some 70% of applications for loans from businesses were approved.

The popular lending interest rates were between 12% and 15% per annum, while special clients enjoyed preferential interest rates1-2% per annum lower.

Governor of the State Bank of Vietnam Nguyen Van Giau affirmed that in the time to come the State Bank would follow a flexible monetary policy aimed at improving the liquidity of banks and lowering interest rates.

The governor has decided to establish two taskforces in Hanoi and HCM City which will cooperate with local associations to abolish difficulties that small- and medium-size enterprises meet when they try to establsih credit relations with banks.

Tien phong, VIETNAMNET

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