September 30, 2010 / 2:43 AM / 9 years ago

UPDATE 1-Vietnam Jan-Sept credit expected to rise 19.5 pct

(Adds annual target to be attained, change attribution)

HANOI, Sept 30 (Reuters) - Loans in Vietnam by the end of this month are estimated to rise 19.5 percent from the end of 2009, the central bank said on Thursday, on course to reach an annual target of 25 percent credit growth.

The projection was based on expansion of 19.27 percent as of Sept. 27, State Bank of Vietnam Governor Nguyen Van Giau said in a statement on the central bank’s web site (www.sbv.gov.vn).

“The credit growth target of 25 percent for the whole of the year will be attained,” Giau said in the statement.

The government has supported credit expansion to facilitate economic growth, which accelerated to an annual rate of 7.16 percent in the third quarter.

Credit jumped 37.7 percent last year from 2008, speeding from an annual rise of 23.58 percent the previous year, the central bank has said.

Loans for securities investment of 15 trillion dong ($769.6 million) had the highest rise of 19.8 percent, consumer loans jumped 19.7 percent to 151 trillion dong while non-production loans rose 18.2 percent to 385 trillion dong, Giau was quoted by Thursday’s Thanh Nien newspaper as saying.

He gave no value estimates for Vietnam’s total credit at the end of September.

He said lending interest rates dropped very slowly in September, edging down just 0.01 percentage point from August. Lending rates in Vietnam now range at between 13-15.5 percent.

The central bank will work with commercial banks to further cut interest rates, Giau said in the newspaper report.

The central bank said on Wednesday it would relax compulsory reserve requirements for banks that made significant loans for agriculture or rural development as a way to mobilise funding for the countryside. [ID:nSGE68S0FM] ($1=19,490 dong) (Reporting by Ho Binh Minh; Editing by Sanjeev Miglani)

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