Last year saw the banks provide sufficient lending to businesses. Credit growth increased by 18.71%, more than the budgeted targeted 16-18%. Interest rates decreased by 0.5-1% a year. Short-term lending rates now commonly stand at between 6-9% a year. Medium and long-term lending rates remain from 9-11% a year. This year the state bank remains keen to maintain or cut rates if possible.
While the world economy was marked by instability last year but the state bank of Vietnam still maintained a 1.1- 1.2% variation in exchange rates. The dong was stable, while foreign exchange reserves increased significantly, up to over $40 billion dollars.
Bad debts were reduced to 2.46%. The restructuring of bad debts was based on the principle of ensuring liquidity, stability and development of the system.
