(ĐN)- According to the statistics by the Dong Nai branch of the State Bank of Vietnam, credit growth in dollars has surpassed credit growth in dong.
(ĐN)- According to the statistics by the Dong Nai branch of the State Bank of Vietnam, credit growth in dollars has surpassed credit growth in dong. Over the past three months of 2010, Vietnam dong credit growth decreased almost 3 per cent while credit growth in dollars was 26 per cent. Dollar loans have increased due to the currency’s lower lending rate. Many enterprises have swapped their dong loans for dollars too.
Demand for foreign currency loans has increased sharply because many businesses cannot afford the overly high interest rates of dong loans. Currently, U.S. dollar lending rates at banks range from between 5.5% to 7% per year. However, some lenders offer 3.5% to 4.5% per year to big corporations. Meanwhile, enterprises who borrow Vietnam dong will have to pay 15% to 18% annually in interest inclusive of bank fees.
Commercial banks in Dong Nai said that the province will continue to see surge in dollar borrowing in the coming time because enterprises want to take advantage of the currency’s lower lending rate.
Reported by V.Lam
