Lending jumps 2.3 per cent

Total lending of the whole banking system on May 22 increased about 2.3 per cent over the end of last year, the State Bank announced yesterday. Dong loans were up 4.6 per cent while foreign currency lending declined 8.1 per cent.

There was a high possibility that general credit growth would reach 2.5-3 per cent at the end of this month, which would be a good sign after lending declined 1.7 per cent in the first four months, the central bank said.

Mobilising interest rates for the dong at many credit institutions now hover around 5-7.5 per cent for terms of less than 12 months and 8-10 per cent for terms of 12 months or more.

Enterprises that could prove their financial situation was healthy and their production and business plans were effective could manage bank loans with an interest rate of 7-8 per cent, according to the bank.

Disposable capital in dong of lending institutions met compulsory reserve requirements.

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