The total amount in outstanding loans that credit institutions in Hanoi have accumulated had reached nearly 664 trillion VND (31.6 billion USD) by the end of June.
The figure represents a rise of 1.7 percent over the beginning of this year and an increase of 8.5 percent year on year, according to the State Bank.
The agency said that lending has risen during the first haft of the year despite dropping off in the first two months. At the end of May, lending in Hanoi accounted for 21 percent of the total lending value in the economy.
Total deposits at the institutions had surpassed 948 trillion VND (45.1 billion USD), an increase of 5.7 percent over last December, Savings are also estimated to have risen steadily, by 11.2 percent.
These moves have helped struggling businesses and investors, supported the market and helped credit institutions to ensure liquidity, said the State Bank.
The structure of credits has changed for the better, with loans being focused on priority sectors including agriculture, rural areas and export.
However, vice chairman of the Hanoi People’s Committee Nguyen Van Suu said at a municipal meeting on July 1 that bad debts in the city were on the rise. By April 30, bad debts represented 6.7 percent of all outstanding loans, compared to only 5 percent last December.
Suu noted that lending still lagged behind deposits since businesses still found it difficult to access capital and local banks needed to stop bad debts from rising further.
The interest rates on loans offered by credit institutions in the city felt by 2-3 percent during the first half of the year and short term rates of 9-12 percent and medium- to long-term rates of 14.6-17.5 percent are being applied to priority areas.
From last month, social housing developers began to enjoy an interest rate of 6 percent on loans.-VNA
The figure represents a rise of 1.7 percent over the beginning of this year and an increase of 8.5 percent year on year, according to the State Bank.
The agency said that lending has risen during the first haft of the year despite dropping off in the first two months. At the end of May, lending in Hanoi accounted for 21 percent of the total lending value in the economy.
Total deposits at the institutions had surpassed 948 trillion VND (45.1 billion USD), an increase of 5.7 percent over last December, Savings are also estimated to have risen steadily, by 11.2 percent.
These moves have helped struggling businesses and investors, supported the market and helped credit institutions to ensure liquidity, said the State Bank.
The structure of credits has changed for the better, with loans being focused on priority sectors including agriculture, rural areas and export.
However, vice chairman of the Hanoi People’s Committee Nguyen Van Suu said at a municipal meeting on July 1 that bad debts in the city were on the rise. By April 30, bad debts represented 6.7 percent of all outstanding loans, compared to only 5 percent last December.
Suu noted that lending still lagged behind deposits since businesses still found it difficult to access capital and local banks needed to stop bad debts from rising further.
The interest rates on loans offered by credit institutions in the city felt by 2-3 percent during the first half of the year and short term rates of 9-12 percent and medium- to long-term rates of 14.6-17.5 percent are being applied to priority areas.
From last month, social housing developers began to enjoy an interest rate of 6 percent on loans.-VNA
