Dong loan rates rose on Monday on Vietnam 's interbank markets as banks faced tight liquidity after lending outpaced deposit growth ahead of the Tet or the lunar New Year holiday next week, bankers and industry reports said.
The central bank's sale of around $3 billion in US dollars to banks in December and January meant dong funds were hard to come by, state-run Saigon Tiep Thi newspaper said in an online report, citing anonymous financial sources.
"Liquidity in the banking system has faced constraints and this pressure continues when cash demand tends to rise around Tet, when it is tough for banks to raise funds," Saigon Hanoi Securities said in a note to customers.
Vietnam's markets are closed from February 15-19 to mark Tet and bankers expect deposits to rise only after the holiday.
Dong rates rose on terms from overnight to two months, while dollar rates increased on all terms between overnight and 12 months.
Overnight dong rose to 10.10 percent from 9.16 percent a week ago, and one-week loans rose to 10.78 percent from 9.98 percent last Monday.
Deposits in banks last month grew a tiny 0.3 percent from December while loans increased 1 percent, the central bank said in a report on January's money markets. It gave no values.
Many banks are offering to pay dong deposits at 10.499 percent, up against the official ceiling of 10.5 percent for major banks. The central bank left its base rate at 8 percent for February.
Saigon Hanoi brokerage forecast a base rate rise after Tet.
Central bank Governor Nguyen Van Giau told reporters late last week that some tightening may be on the cards.
ANZ bank, in a report on February 1, forecast the base rate could rise to 8.5 percent from June and 9.5 percent in December.
Prime Minister Nguyen Tan Dung has said Vietnam 's economy would grow 7 percent in 2010 after 5.3 percent in 2009. Hanoi aims to keep inflation below 7 percent this year, although economists expect a higher rate.
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