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Credit in Ho Chi Minh city is expected to increase at the end of July 2020

Credit in Ho Chi Minh city is expected to increase at the end of July 2020

Wednesday 29, 07 2020
State Bank branch HCM City estimated that total outstanding loans of credit institutions in the area as of July 31, 2020, reached VND 2,380,000 billion, up 3.66% compared to the end of 2019.

Short-term debt is estimated at VND 1,147,000 billion, accounting for 48% of total credit balance, up 0.56% over the previous month, and up 3.41% compared to the end of 2019. Medium and long term debt the term is estimated at VND 1,233,000 billion, accounting for 52%, up 0.59% over the previous month, and up 3.89% compared to the end of 2019.

According to Mr. Nguyen Hoang Minh, deputy director of the State Bank's branch in the city. In HCMC, credit maintained the growth rate in the first 6 months of 2020, increasing by 3.07%. It is estimated that in the first 7 months of 2020, the credit growth will reach 3.66%, lower than the same period last year.

Currently, the banking industry is still focusing resources to implement solutions to overcome difficulties and support enterprises affected by the Covid-19 pandemic to restore production and business under the policies of the Government, the State Bank, and the People's Committee. city.

Credit in Ho Chi Minh city is expected to increase at the end of July 2020

Outstanding loans in VND still account for a major proportion of total outstanding loans. By the end of June 2020, VND credit accounted for 93% of total outstanding loans, while foreign currency loans accounted for only 7%. VND credit growth maintained at 4.02% compared to the end of last year.

Medium, long-term credit maintains a higher proportion of total credit in the whole area, accounting for 52%. Both credit sections maintained growth compared to the end of 2019. In particular, short-term credit increased by 3.41%, medium, and long-term credit increased by 3.89%.

Outstanding short-term loans in VND for 5 groups of industries and sectors (by the end of June 2020) reached VND 179,257 billion, with 31,605 borrowers.

In which: lending to agriculture and rural areas reached VND 28,355 billion; export loans to VND 13,801 billion; loans to support small and medium-sized enterprises reached VND 130,385 billion; loans to supporting industries reached VND 6,481 billion; loans to high-tech enterprises to reach VND 235 billion; Lending under the market stabilization program: outstanding loans of the program by the end of June 2020 reached VND 891 billion.

Regarding the implementation of Circular No. 01/2020 / TT-NHNN, Directive 02 / CT-NHNN, and the results of supporting enterprises in the city, the State Bank branches in the city. HCM said, by the end of 17/7/2020 reached 474,104 billion, for 233,885 customers.

In particular, rescheduling debt repayments for 170,232 customers with outstanding loans of VND 71,069 billion; interest reduction and the exemption for 18,259 customers with a loan balance of VND 53,634 billion; accumulated new loans from January 23, 2020, to 45,394 customers with sales of VND 349.401 billion.

On July 20, 2020, the State Bank branch in the city. Ho Chi Minh City has received 712 cases sent from departments (Department of Industry and Trade, Department of Tourism and People's Committee of 24 districts, from the State Bank hotline), of which: 35 cases are being processed.

According to Mr. Minh, there have been results of handling 677 cases, including 102 cases where enterprises do not have / any longer need support; 80 cases of enterprises being supported to reduce interest rates from 0.2-2% / year compared to the previous interest rates; 17 enterprises restructured debt, keeping debt group unchanged; 44 cases were granted new loans; 3 cases increased credit limit; 03 cases of service charge reduction; 11 customers are supported in many forms (increase limit, reduce interest rates, debt structure ...)

106 businesses are reviewing records; 225 advisory cases; 18 cases could not contact the enterprise; 01 cases of enterprise operating in the field of commercial banks restricting lending; 51 cases are ineligible for loans or do not belong to the bank's target customers; 06 cases ineligible for debt restructuring or interest reduction; 10 cases without outstanding loans at the bank.

Commercial banks supported mainly focusing on two groups: reducing interest rates and restructuring debts, maintaining debt groups. These are the two main solutions that commercial banks are applying.

Source: Vietnam Finance

Banking & Finance

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