Commercial banks have opened their doors again to borrowers after a period of refusing loans.

Originally they had been attempting to curb the credit growth rate under instructions by the State Bank of Vietnam.

Ho Xuan Nghiem, deputy general director of Sacombank, said his bank had resumed lending, while prioritizing loans to loyal clients who have good credit records with the bank.

Nghiem went on to say the targeted credit growth rate of the bank in 2010 would be lower than in 2009 and so they were forced to be selective over borrowers.

“We will even have to reconsider the credit limits for existing clients. If clients have always been late in paying debts or do not use other bank services, they will not be given priority in accessing loans,” Nghiem said

Deputy general director of Asia Commercial Bank (ACB) Nguyen Thanh Toai also said his bank had once more begun providing loans, however, because of limited resources, the bank would also have to be selection. Toai said clients who still cannot meet bank requirements would be told to come back after Tet in February, when the capital sources are more profuse.

Regarding the lending interest rate, Toai said with basic interest rates now at eight percent per annum, the ceiling lending interest rate would become 12 percent per annum. However, clients would have to pay additional fees, depending on the values of loans.

Toai said previously, when the mobilized capital was easily available and there were low interest rates, the bank did not collect additional fee for loans.

However, nowadays, since the capital mobilization increases, banks have to ask borrowers to share the difficulties with them.

Meanwhile, other banks are yet to resume lending, because they had provided too many loans before and the outstanding loans are higher than the mobilized capital.

In related news, the gold deposit interest rates have been decreasing. The highest deposit interest rate now being offered is at 4.7 percent per annum, while the rate once reached seven percent per annum. Eximbank proves to be the bank that has slashed deposit interest rate most sharply. The interest rates offered for 6 and 24 month term deposits have been cut to 1.5 percent per annum.

Analysts believe banks will cut gold deposit interest rates further because the demand for loans in gold has been decreasing, while banks have limited lending in gold to serve investors’ speculation.

Rol.vn - Source: Vietnam Net