Bank lending in the first four month of this year slid nearly 0.66 percent from the end of 2011 while the country’s broadest measure of total money supply or M2 rose modestly at 1.55 percent, according to estimations of the local newswire VnEconomy.vn.
Loans in foreign currency rose 0.91 percent during the period while VND-denominated credits fell 1.09 percent. The country targets to limit money supply and credit growth at 15-17 percent.in 2012.
Earlier, the National Finance Supervision Committee (NFSC) estimated that the country’s credit growth fell 1.71 percent by mid-April from late December last year, posing a huge challenge for the country’s economic expansion and macroeconomic stability.
The local economy has expanded only 4 percent in Q1/2012, the slowest pace in three recent years [+5.84 percent in Q1/2010 and +5.57 percent in Q1/2011], according to the central bank’s data. Experts warned that the country may not achieve the targeted economic growth of 6 percent for this year.
The country recorded about 17,700 enterprises that went bankruptcy or suspended their operation in the first four months this year, up 9.5 percent on year, said Ministry of Planning and Investment (MoPI) at the meeting held by the Economic committee of National Assembly on May 14.