Business

Credit growth likely to be 14.1 percent this year: SBV survey

Credit growth is projected to be 5.3 percent in the first quarter of 2022 and 14.1 percent this year, according to a survey of lenders conducted by the State Bank of Vietnam (SBV) last December.
Credit growth likely to be 14.1 percent this year: SBV survey ảnh 1Illustrative photo. (Source: VNA)

Hanoi (VNA) – Credit growth is projected to be5.3 percent in the first quarter of 2022 and 14.1 percent this year, according toa survey of lenders conducted by the State Bank of Vietnam (SBV) last December.

The COVID-19 pandemic kept under control is boosting demandfor capital. As of January 28, the credit grew by approximately 2.74 percent comparedto the end of last year and 16.32 percent year-on-year, said SBV DeputyGovernor Dao Minh Tu. It is also much higher than the 0.53 percent growth inJanuary 2021.

Outstanding loans reached nearly 286 trillion VND lastmonth.

The central bank is considering to raise the credit growthtarget to 14 percent in 2022, Tu added, compared to the 12-percent goal of theprevious year.

Fueled by the government’s credit package worth 40 trillionVND (over 1.75 billion USD) prioritised for production and business sectors, thecredit growth is expected to give extra leverage to post-pandemic economicrecovery.

Credit growth rebounded during the final quarter of lastyear on the back of surging capital demand and firms ramping up production,said CEO of the Orient Commercial Joint Stock Bank (OCB) Nguyen Dinh Tung.

The government is pushing for the launch of more stimulus packages,acceleration of public investment disbursement and removal of challenges facingprojects, he said, noting that these factors will further boost creditgrowth./.

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