Total lending of all credit institutions grew 6.45 percent in the first eight months of this year, the State Bank of Vietnam (SBV) has reported.

Loans in dong increased 10 percent, with interest rates falling by 3-5 percent. Foreign currency loans fell by 11.55 per cent in line with national anti-dollarisation policies, it said.

At the end of August, loans with interest rates of up to 13 percent accounted for nearly three quarters of all lending, up 41.6 percent over the end of last year. Loans with interest rates of 13-15 percent represented about 17 percent, down 29.3 per cent.

Loans with interest rates of over 15 percent made up just 8 percent, a drop of 20.6 per cent from the ratio at the end of 2012.

The SBV said lending continued to concentrate on prioritised sectors that assisted the production and export of the country's major products such as rice and seafood, and helped bring in significant amounts of foreign currency.

Lending for home purchases and rentals aimed to prop up the ailing property market was stepped up, but remained limited.

By August 31, commercial banks had registered housing loans worth a combined 5.02 million USD to individual customers, and disbursed about 3.3 million USD. For businesses, they registered loans worth 33.71 million USD, but disbursed about only 2.12 million USD.

In the period under review, total deposits at credit institutions grew about 10.5 percent, although deposit interest rates declined by 2-3 percent.

Deposits in foreign currencies rose significantly by 7.23 percent, despite official commitments about the dollar/dong exchange rate stability, while deposits in dong were up around 11 percent.

According to the SBV, total money supplies in the economy increased 9.16 per cent in the first eight months in line with the annual target of 14-16 percent money supply growth.-VNA