Bank credit growth has been steady in HCM City in recent months and will continue rising this year, according to the central bank.

Nguyễn Đức Lệnh, deputy director of the State Bank of Vietnam’s HCM City office, said loans outstanding as of October 31 at lenders were worth more than VNĐ3.78 quadrillion (US$149 billion), up 0.98 per cent from the previous month and 6.87 per cent for the year.

Loans in đồng accounted for 96.2 per cent, a 7.41 per cent increase year to date, he said.

He attributed the growth to low interest rates, supportive credit policies and preferential credit packages.

Lending to businesses participating in the city’s price stabilisation programme alone was worth over VNĐ9.7 trillion ($383 million), and the loans were given to 37 companies at an average preferential rate of 4 per cent.

The low interest rates have greatly helped businesses reduce costs, enabling them to cut or stabilise prices, Lệnh said, adding that prices usually tend to increase during the year-end holiday season.

He said credit is expected to continue growing and at an even higher pace than in previous months driven by seasonal factors.

Goods production and consumption, exports, services, and tourism activities often grow strongly at year-end, driving credit growth, he pointed out.

Bank deposits at the end of October topped VNĐ3.8 quadrillion, up 8.9 per cent for the year.

Besides, lending to businesses that have signed up for the city’s price-stabilisation programme would continue to be implemented to help keep prices, especially those of essential consumer goods, steady at the end of the year, he added. — VNS