Vietnam PM Asks Banks to Weigh Increasing Loan Limits for Growth
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(Bloomberg) -- Vietnam’s Prime Minister Pham Minh Chinh asked banks to weigh increasing loan limits as the nation grapples with a credit crunch that risks economic growth.
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Chinh said “reasonably increasing credit limits” would boost lending and help with macro economic stability and growth, according to a posting on the government website.
Vietnam Bank Association General Secretary Nguyen Quoc Hung, however, cautioned that commercial banks do not have enough capital to increase lending even if the State Bank of Vietnam allows them to increase credit quotas, Lao Dong newspaper reported on its website.
Vietnam’s government, meanwhile, has appointed a team of ministerial-level officials to address a growing crisis in the nation’s property sector as developers struggle to obtain funding for projects and some are struggling to survive.
The appointment of the group comes after the government implemented stricter corporate bond regulations while stepping up investigations of companies. Property developers are struggling to access capital sources and potential home buyers face tightening credit as the State Bank cautions against risky real estate sector loans.
Chinh, speaking at a Nov. 17 meeting with voters in Can Tho City, directed banks “to take measures to remove difficulties and bottlenecks” to help companies, according to the posting.
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