Bank for Foreign Trade of Vietnam, or Vietcombank, has just announced two more preferential lending packages worth a total of up to VND16 trillion in an effort to disburse more loans so as to attain a credit growth of 10% in line with this year’s plan.

The bank’s first package will have a credit line of VND15 trillion offered at an annual lending rate of 9%, targeting customers with credit rating of A or higher rankings and for large clients wanting to spur short-term working capital. For target clients in the prioritized group with lower credit ratings, lending rates will range between 10% and 12% per annum.

Besides, Viecombank also increases the credit line from VND2 trillion to VND3 trillion for the other package targeting individual customers in need of housing, building or fixing homes, or household businesses with a lending rate of 12% a year.

Nguyen Phuoc Thanh, general director of Vietcombank, said his bank obtained credit growth of over 7% year-on-year as of the middle of this month. So he expected his bank’s credits to surge an additional 2.5-3% to achieve the adjusted target of 10% thanks to the on-going lending programs.

Vietcombank from early this year was given a credit growth quota of 17% but the bank has revised down the target to 10% given the current tough market conditions.

Thanh also said his lender is carefully screening loan applications and closely monitoring cash flows of enterprises to avoid borrowers using soft loans to make deposits at other banks for a margin.

The Saigon Times Daily