Credit growth by August 10 reached 8.3 percent compared to December last year, much higher than during the same period last year, said director of the State Bank of Vietnam's Credit Department, Dang Tien Dong. The rise was only 3.7 percent between early January and end July last year. At this pace, Dong expected the country's credit growth this year to reach 15-17 percent in keeping with the target fixed by the central bank. Such fast-paced credit growth was attributed to a sharp rise in lending to infrastructure, consumption and real estate sectors. However, experts are concerned about a rising loan-to-deposit ratio. According to the HCM City Securities Co (HSC), the lack of balance between lending and deposit growth rates will lead to an unsustainable banking system in the long term, a situation that will force the central bank to make a tough choice: either increase the money supply or restrict the credit growth in times to come. The central bank would have to work out ways to achieve lending and deposit growth balance, and while the task may not be very urgent but nevertheless should be undertaken before the end of this year, the HSC said. According to statistics from the central bank, the dong lending rates in the week ending July 31 continued to be stable. The average rates were commonly at 6-7 percent per year for short-term loans for priority fields, and 9-10 percent for medium- and long-term loans. For ordinary loans, the rates were commonly 7-9 percent per year for short-term and 9.3-11 percent for medium- and long-term loans. During the week, a few banks reduced dong mobilising rates by 0.1-0.3 percentage points for several terms. The rates were commonly 0.8-1 percent per year for demand and below 1 month terms, 4.5-5.4 percent for deposits of 1 month to below 6 month terms, 5.4-6.5 percent for 6 month to below 12 month terms; and 6.4-7.2 percent for 12 month plus terms.-VNA