July 17, 2009 / 2:29 AM / 10 years ago

Vietnam caps big banks' 2009 credit growth at 25 pct

HANOI, July 17 (Reuters) - Vietnam’s central bank has told big state-owned banks and partly private lenders Vietcombank and VietinBank to cap their credit growth at 25 percent this year to prevent the return of high inflation, a state-run newspaper said.

The State Bank of Vietnam also asked other partly private banks to submit their credit expansion plans by July 20, the Lao Dong daily cited a central bank report as saying.

Vietnam could face the return of high inflation in the second half of this year, central bank Governor Nguyen Van Giau said. [ID:nHAN517781]

The credit growth cap imposed on three state-owned commercial banks plus Vietcombank VCB.HM and VietinBank CTG.HM, which together account for about 70 percent of lending, was issued after a meeting on Tuesday.

The government said last week that overall credit growth this year should be 25 percent to 27 percent [ID:nHAN473601], while central bank data showed loans at the end of June had risen 17 percent since the end of 2008. (Reporting by Ho Binh Minh; Editing by Alan Raybould)

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