Thuy Trieu
However, given monetary policy management orientations in 2014, the central bank will consider removing deposit rate caps if the currency market is stabilized and liquidity of credit institutions is vastly improved.
At present, the central bank is applying a deposit rate cap of 7% per annum for terms of six months or less.
In 2014, the total money supply is expected to rise around 16-18% while credit growth rates are estimated at 12-14%. The rates will be revised following the real situation and to secure implementation of monetary policies, keeping interest rates and exchange rates at reasonable levels and suitable to macro economic balances and developments of the currency and forex market.
The central bank said that this year’s credit growth rate is likely to be lower than the target of 12%. As of December 12, credit growth rate of the banking system stood at 8.83% against late 2012, the report said.
The ratio of loans extended for production and business, especially priority sectors, increased strongly while that for non-priority sectors declined.
As of November 30, credits for the agriculture and rural sector increased by around 17%, high-tech enterprises up 24.5%, exporters up 3.32% and the supporting industry up 10.84% against year-end 2012.
By December 12, the total amount of money supply increased by 14.6% while mobilization by local credit institutions rose 15.6%, of which foreign-currency and Vietnam dong deposits rose 13.7% and 15.9% from the end of 2012 respectively.
The ratio of foreign-currency deposit over money supply continued to decline to 12% compared to 15.8% in late 2011 and 12.36% in late 2012, suggesting that dollarization has gradually subsided.
In 2012 and the Jan-Oct period in 2013, credit institutions actively set up risk reserve funds to handle bad debts. Nearly VND106 trillion worth of bad debts was cleared out of balance sheets during the period.
Local banks also reduced lending rates and rescheduled loans to suit conditions of the market and borrowers. By October 31, banks restructured and maintained normal status of nearly VND317 trillion worth of loans which should have been classified as bad debts.
For bad debt handling, Vietnam Asset Management Company (VAMC) purchased nearly VND28.1 trillion worth of original debts from 26 credit institutions as of Monday. VAMC expects to buy VND30-35 trillion worth of bad debts this year.
Đăng ký: VietNam News
