HCMC – There is still much room for lending as credit growth has so far this year remained modest while the full-year loan expansion target is 14-15%, said an official of the State Bank of Vietnam’s HCMC branch.

Recently, there have emerged rumors that banks were about to reach their credit growth quotas, causing confusion among borrowers, the Vietnam News Agency reported.

Nguyen Duc Lenh, deputy director of the State Bank of Vietnam’s HCMC branch, rejected the rumors, saying the city’s credit has grown merely 2% so far, which leaves plenty of room for businesses to take out loans.

Despite slow credit expansion early this year, the growth would gain pace in the coming months when business conditions improve, he added.

Besides, the municipality has launched a credit package worth over VND453 trillion with an interest rate subsidy of two percentage points to support businesses.

With the participation of 20 banks, the program is expected to pave the way for cash-strapped businesses to take out loans and accelerate credit growth.

Under the program, around VND117 trillion has been handed to 31,500 clients.