Credit in Hanoi up 8.15% in 1H

Total outstanding loans stand at $69.59 billion, up 8.15% since end-2016 and 16.01% year-on-year.

Credit in Hanoi rose 8.15 per cent in the first half of 2017, according to a report from the State Bank of Vietnam's Hanoi branch.

Total outstanding loans (including loans and investments) by credit institutions in Hanoi are estimated at VND1.582 trillion ($69.59 billion), an increase of 8.15 per cent compared to the end of 2016 and up 16.01 per cent year-on-year.

Short-term debt accounted for 44.1 per cent and rose 8.99 per cent compared to the end of 2016, medium- and long-term loans accounted for 55.9 per cent and increased 10.22 per cent, outstanding loans in VND accounted for 89 per cent and were up 9.74 per cent, while outstanding loans in foreign currencies accounted for 11 per cent and increased 9.1 per cent.

Credit flows are still focused primarily on business production and priority areas, according to the government and the central bank.

Loans for agriculture reached VND85.7 trillion ($3.76 billion), accounting for 7 per cent and increasing 10.82 per cent compared to the end of 2016, while loans to small and medium-sized enterprises (SMEs) stood at VND513.4 trillion ($22.58 billion), accounting for 41.9 per cent and increasing 12.29 per cent. Outstanding loans for export reached VND119.849 trillion ($5.26 billion), accounting for 9.78 per cent and up 9.52 per cent.

The Hanoi branch said that in the first six months of this year, credit institutions in Hanoi have made efforts to mobilize capital for the banking system.

Total mobilized capital by credit institutions in Hanoi were estimated at VND1.733 trillion ($76.23 billion) as at June 30, up 5.39 per cent compared to December 31, 2016 and 12.61 per cent higher year-on-year.

“Mobilized capital at credit institutions in Hanoi will meet the capital demand of businesses, customers, and other investment needs as well as ensure the liquidity of credit institutions,” according to the report.

Along with expanding credit, credit institutions also improved credit quality. Overdue debts at local credit institutions accounted for only 2.82 per cent of all outstanding loans as at June 30.

Credit institutions generally pay attention to ensuring safety in their system. They positively restructure assets and liabilities, to ensure capital adequacy ratios in their banking operations, ensure liquidity, and the ability to repay promptly.

by May May / VET