The Hanoitimes - Many credit programs with discounts in interest rates have been promoted strongly by credit associations in Hanoi, creating opportunities for enterprises to borrow low interest rate capital and improve their competitiveness.
Credit growth reached 11.7%
According to the Hanoi State Bank of Vietnam (SBV), in August, the total outstanding loans of credit institutions in Hanoi were approximately 1.634 trillion VND, an increase of 1.5% in comparison to July and 11.7% compared to last December. In particular, the short-term loans were 903 trillion VND, increasing by 9.6%. Meanwhile, the medium and long term loans were 731 trillion VND, an increase of 14% in comparison to the end of 2016. The credit outstanding for agricultural sector accounted for 5.6%, and the loans to small and medium enterprises (SMEs) made up to 30.3%. Real estate, consumption and export loans accounted for 6.1%, 7% and 7.6% respectively.
The growth of credit in Hanoi is considerably good and increases stably during the first months of the year. While capital mobilization continued to increase, it is expected that in August, the capital would reach 1.783 trillion VND, an increase of 1.2% in comparison to last month and 8.4% compared to the end of 2016. “The credit mobilization of credit institutions in the area meet the demand of other investment needs as well as their own liquidity,” the Hanoi SBV assessed.
Reduce interest rate for enterprises
Director of Hanoi SBV Nguyen Minh Tuan said, the bank and related districts, wards, associations and organizations jointly organized conference to remove barriers for enterprises; Implementing the SBV’s policy so that all credit institutes to reduce interest rate for enterprises taking part in the program connecting banking – enterprises, the price stabilization program with the reduced rate of 1-1.5% per year compared with normal interest rate. The government’s lending program for hi-tech agricultural projects are also disbursed quickly with the banks’ support. According to the government’s requests, despite the reduced rate of 0.5% per year is not significant, it is the positive signal from the market, which has high impact on the revenue and profits of enterprises. Credit institutions in Hanoi also offer credit services with lower interest rate for enterprises to loan, which in turn increase their competitiveness. The high amount of resources mobilized in Hanoi is a condition for credit institutes to offer lower rates in the market.
As of June 30, 2017, the remaining amount for lending in the program connecting enterprises-banking is 301 trillion VND, including 65 trillion VND (with lower interest rates, or extending payment period, restructuring installment method) from previous loans; and 237 trillion VND available for nearly 18,000 enterprises to loan.
Tram Anh - Ngoc Thuy