By late May, bad debts at Da Nang’s credit organisations had reached 1,939 billion VND, accounting for 3.73% of the total of their outstanding loans, but representing a 9.5% decrease compared with late 2012.  However, local credit growth remained at a low level and rose by only 3.47% year-on-year, whilst deposits at local banks increased by 4.22%.

This information was announced at a meeting of the city’s banking sector on Tuesday to identify its tasks for the remaining months of this year.

Between June and December, the total outstanding loans in the city are expected to reach an estimated 52,500 billion VND.  Of this, lending to the agricultural sector will likely account for 1.72% of the total, that to industry 17.99%, trading and service 18.86%, building 13.57%, and transportation 2.64%.  There will be positive changes in the credit structure with a focus on lending locally to production and business activities, especially in priority areas.

Credit organisations will lower their lending interest rates to below 13%

In an effort to help local enterprises to overcome their difficulties and deal with bad debts, local credit organisations have been asked by the Da Nang branch of the State Bank of Viet Nam to lower their lending interest rate to below 13% pa. 

In addition, local relevant agencies will increase their checks and monitoring of the gold and foreign currency markets in the city, as well as impose strict punishment for violations.  Their focus will be on handling dollarisation, and giving loans to local house buyers.