Credit growth rises 13%, over VND1,000 trillion non-performing loans handled

Tuesday, 2019-12-31 17:43:24
 Font Size:     |        Print

The total outstanding loans of the banking system in 2019 rose over 13% compared to 2018. (illustrative image)
 Font Size:     |  

NDO – The total outstanding loans of the banking system in 2019 rose over 13% compared to 2018, the State Bank of Vietnam (SBV) announced at a press briefing held in Hanoi on December 31.

Deputy Director of the SBV Credit Department, Ha Thu Giang, said that the credit structure has continued to see positive adjustments with loans focused on production, business and prioritised sectors while loans in areas of potential risks have been kept under control well.

Giang noted that loans in the agricultural and rural sector increased by 11% compared to 2018, accounting for 25% of the total outstanding loans.

In addition, loans to small and medium-sized enterprises went up by 16% and loans to high-tech enterprises increased by 15%.

Credit institutions have also actively implemented measures to ease difficulties for enterprises and farmers affected by natural disasters and epidemics.

By the end of 2019, the non-performing loan ratio at credit institutions has dropped to 1.89%, meeting the set target of below 2%.

Notably, the entire credit institution system has handled VND1,064 trillion (US$46 billion) worth of non-performing loans between 2012 and 2019.

Solutions to settle non-performing loans have been carried out synchronously associated with measures to control newly arising non-performing loans have contributed to improving credit quality and reducing non-performing loan ratio of the credit institution system, heard the meeting.