Calls to loosen lending criteria to boost business borrowing

A lot of businesses in Vietnam have already reached their maximum borrowing capacity, with no collateral left to take out new loans according to Huan Huu Nguyen, a lecturer at Ho Chi Minh City University of Economics, and reported in Dan Tri. Nguyen says the issue is on the demand side with orders down amid global economic uncertainty, but then goes on to say the solution may be to relax lending criteria and allow for banks to take on riskier loans. It’s not clear how this would increase demand.