Some bankers had plenty of dollars but had to restrict their loans.

The downward trend in the dollar interest rate came after the central bank tightened dollar lending rules, allowing only short-term funding to be extended to exporters. Importers would be able to use all types of loans if they could prove their repayment abilities.

The regulation, effective from May 9, was aimed at stopping the upward trend in US dollar interest rates which occurred in early March after the central bank delivered a strong message to keep the Vietnamese dong ceiling deposit rate at 14 per cent per year.

In March, Viet Nam’s inflation hit 13.89 per cent, the biggest annual increase in 25 months, despite monetary tightening and plans for scaled back fiscal spending.

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Apr 12 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry