Tougher conditions on foreign loans on the anvil

The year 2012 is expected to witness tougher conditions on foreign loans. Foreign credit is anticipated to head for privileged objects.
It is suggested that foreign loaning conditions should be reviewed so as to be stricter for borrowers without foreign income from manufacturing and business, according to Nguyen Van Hung, deputy director of the State Bank of Vietnam, Hanoi branch.

A senior manager of Vietcombank affirmed this year foreign credit growth could surpass that of dong credit, yet austerity conditions would be applied.

According to the central bank, the previous year saw several credit institutions mobilising foreign capital for high credit growth, which could pose plenty of risks on sudden foreign capital withdrawal. There still exist violations of regulations on foreign exchange rate, which has brought about market instability.

Therefore, 2012 is expected to see closer monitoring of capital mobilisation and foreign loaning. – Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Feb 11 2012. 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