Export companies preferred loans in foreign currencies than in theVietnamese dong due to a stable foreign exchange policy and lowerinterest expenses.
Although the interest rate of loans inVietnamese dong was cut considerably this year, it remained about 30percent higher than the interest rate of loans in foreign currencies.
Experts said that loans in foreign currency became a major stimulator of credit growth.
Statisticsshowed that as of September 22, the outstanding loans in foreigncurrencies increased by more than 20.7 percent, five times the amount ofoutstanding loans in Vietnamese dong.
Several export companiessaid that they preferred loans in foreign currencies due to the lowinterest rate, about 3 to 4 percent annually, with the State Bank ofVietnam's pledge to control the exchange rate fluctuation within the+/-2 percent amplitude from late 2011.
According to Tran QuocManh, General Director of Sadaco, the interest expenses for loans inforeign currencies were much lower than loans in Vietnamese dong. Thisresulted in rising demand for loans in foreign currencies, especially atthe end of the year to make payments, he said.
Truong Thi ThuyLien, director of a footwear and leather export company in southern BinhDuong province, said that with the Government's stable foreign exchangepolicy, companies were assured of safety from the risks ofexchange-rate fluctuations.
The central bank on December 24pledged to persist with its stable foreign exchange in 2015.Accordingly, the depreciation of the Vietnamese dong against the USdollar will be maintained at less than 2 percent.
Previously, thecentral bank's Deputy Governor Nguyen Thi Hong had said that the bankwill continue to allow credit institutions to give loans in foreigncurrencies to export companies and petrol wholesalers till the end of2015, after reviewing the foreign currency market and next year'seconomic growth target.
An official document to replace Circular No 29/2013/TT-NHNN on loans in foreign currencies was expected to come out this week.
Still, several experts warned that strong foreign currency credit growth could put pressure on liquidity.-VNA
Although the interest rate of loans inVietnamese dong was cut considerably this year, it remained about 30percent higher than the interest rate of loans in foreign currencies.
Experts said that loans in foreign currency became a major stimulator of credit growth.
Statisticsshowed that as of September 22, the outstanding loans in foreigncurrencies increased by more than 20.7 percent, five times the amount ofoutstanding loans in Vietnamese dong.
Several export companiessaid that they preferred loans in foreign currencies due to the lowinterest rate, about 3 to 4 percent annually, with the State Bank ofVietnam's pledge to control the exchange rate fluctuation within the+/-2 percent amplitude from late 2011.
According to Tran QuocManh, General Director of Sadaco, the interest expenses for loans inforeign currencies were much lower than loans in Vietnamese dong. Thisresulted in rising demand for loans in foreign currencies, especially atthe end of the year to make payments, he said.
Truong Thi ThuyLien, director of a footwear and leather export company in southern BinhDuong province, said that with the Government's stable foreign exchangepolicy, companies were assured of safety from the risks ofexchange-rate fluctuations.
The central bank on December 24pledged to persist with its stable foreign exchange in 2015.Accordingly, the depreciation of the Vietnamese dong against the USdollar will be maintained at less than 2 percent.
Previously, thecentral bank's Deputy Governor Nguyen Thi Hong had said that the bankwill continue to allow credit institutions to give loans in foreigncurrencies to export companies and petrol wholesalers till the end of2015, after reviewing the foreign currency market and next year'seconomic growth target.
An official document to replace Circular No 29/2013/TT-NHNN on loans in foreign currencies was expected to come out this week.
Still, several experts warned that strong foreign currency credit growth could put pressure on liquidity.-VNA
