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Vietnam's banks see rates down, less bad debt in 2015: central bank
[HANOI] Vietnam's banks expect improved business in the second quarter ending June and better results for the whole of 2015, with easing interest rates and a reduction of bad debt in line with a government target, the central bank said on Monday.
The sector would post annual credit growth of nearly 17 per cent, and deposits would grow nearly 15 per cent this year from 2014, the State Bank of Vietnam (SBV) cited from its business sentiment survey of domestic and foreign banks in the country. "Most banks expect their bad debt ratio will further the declining trend and be kept below 3 per cent (of loans) by the end of 2015," the SBV said in a statement. It did not say how many banks took part in the survey.
Demand for loans showed signs of quickening from March 2015 and more than half of the banks expected interest rates would ease 0.6-0.7 percentage point in the three-month period ending June and down by 0.87-1.1 percentage point for the whole year.
The central bank has projected lending this year to grow up to 17 per cent while bad debt would be cut to below 3 per cent by the year end from 3.25 per cent in December 2014.