Vietnam's Stock Market Year In Review, Bull Market Ahead - junioraftz's Blog

Vietnam's Stock Market Year In Review, Bull Market Ahead

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Click on charts and graphs to expand. [Banks] get this huge spread to partially amortize the hit [they"re] taking on the zero value bonds every year which are collateral for these loans that [they] are making right now, the commercial lending rate is about 13%, so if [they"re] able to borrow at half the face value of [their] loans, that mean [they"re] going to get a spread on [their] lending thats something to offset against the hit [they"re] required to take [of 25% annually on the bad loans]. [People should give the government] credit for what theyve done so far they stabilized the banks, they did a good job on that. They imposed a lot more credential regulation on the banks The government has also kept the system flush with liquidity whenever necessary loan-deposit ratios are now very sensible My own feeling is that [NPLs] have been contained, they are not going to grow from here, but bank balance sheets will start to expand as interest rates keep getting cut, and new lending comes on stream slowly but surely, the economy will grow and this whole NPL thing will become a receding force within the economy. Not overnight, but in the next few years. After a 34% jump in Vietnams stock exchange index, the VNI, between November 27, 2012, and April 1, 2013, the exchange best stocks to buy today has settled into a trading range the remainder of the year. Mr.
Full story: http://www.forbes.com/sites/jo nspringer/2013/12/30/vietnams- stock-market-year-in-review-bu ll-market-ahead/

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