Experts concerned over foreign-currency credit surgeEconomists have warned of forex risks as corporate borrowers have grown dependant on foreign-currency credits, resulting in a strong rise in foreign-currency outstanding loans since early this year, according to Lao Dong newspaper. However, its dong lending rose just 5.3% compared with an 11.5% increase in lending in U.S. dollar and other foreign currencies. At the end of April, local banks’ dong credit growth was expected to be 4.1%, while that of foreign currencies was projected at 6.3%. According to a research team at BIDV, foreign-currency lending rose sharply in 2017, with a growth rate reaching 18% at the end of last year. In the coming period, enterprises will face risks if the dollar price and lending rate increase, the banker said.

Source: VietNamNet News June 11, 2018 12:33 UTC