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Outstanding loans recorded an increase of over VND 200,000 billion in December


Outstanding loans increased in December, estimated to be equal to total outstanding loans of October and November. SSI Research believes that the low interest rate level will remain in the next few months and credit for 2020 and 2021 may be slightly higher than expected by the State Bank of Vietnam.

SSI Securities Analysis Center - SSI Research has just released money market report week for the week from December 21 to December 25.

The open market did not have any new transactions and the interbank interest rate remained at 0.2% p.a. for the overnight term and 0.25% p.a. for the 1 week term. Deposit interest rate is also stable at 2.5-3.8% p.a. for terms of less than 6 months, 3.7-5% p.a. for terms of 6 to less than 12 months, 4.9-5.8% p.a. for  terms of 12,13 months.

According to information from the State Bank of Vietnam (SBV), as of December 21, credit increased by 10.14% and is expected to increase by 11% for the whole of 2020 compared to the end of 2019. Outstanding loans are estimated to increase by more than VND 200,000 billion in December, equivalent to the total additional outstanding loans of both October and November.

Credit growth at the end of the year is not an unexpected development, but the current growth rate is higher than the estimate of SSI Research and the State Bank of Vietnam at the end of November. Good disease control, tightening private corporate bond issuance and interest rate incentive packages recently have boosted the economy's demand for credit. The State Bank of Vietnam expects credit growth in 2021 to be about 12%, but it can adjust flexibly in accordance with market and economic developments.

SSI Research believes that the low interest rate level will remain in the next few months and credit in 2020 and 2021 may be slightly higher than the expected level of SBV.

The world celebrated Christmas in a rather quiet atmosphere as the Covid-19 continues to spread, with more than 81 million infections and 1.77 million deaths. Vaccines are being administered to a large extent in the US and Europe, but concerns tend to increase as viral strains have emerged in the UK and South Africa.


Kylie Nguyen

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