At the quarterly meeting of the National Financial and Monetary Policy Advisory Council in Hanoi on July 12 (Photo: VNA)Hanoi (VNA) – The State Bank of Vietnam (SBV) has been working to regulate liquidity in order to stabilise the monetary market given global economic uncertainties and geopolitical tensions, and control inflation and stand ready to ensure capital for economic recovery and development, its Deputy Governor Dao Minh Tu said on July 12.
Speaking at a quarterly meeting of the National Financial and Monetary Policy Advisory Council in Hanoi, the official noted that gross domestic product (GDP) in the first half of this year rose 6.42 percent year-on-year, and attributed the economic recovery to the vaccination rollout.
Although inflation was lower than forecasted, it showed a rapidly increasing trend and was expected to surpass 4 percent in the second half, he added.
According to the Deputy Governor, the central bank has flexibly implemented monetary and fiscal policies, and other macro policies to support economic recovery.
However, the bank remained vigilant against inflation risks, contributing to ensuring macro-economic stability.
It has kept interest rates unchanged amid rising global rates, creating conditions for credit institutions to access capital from the SBV at a low cost and stabilise their own rates, thus helping clients to restore production and business.
Tu cited statistics as showing that as of June 30, credit expanded 9.35 percent compared with late 2021, and 16.69 percent year-on-year, due to higher credit demand since the beginning of this year.
To support people and clients affected by COVDI-19, he said at the end of May 2022, the accumulative restructured loans were worth over 709 trillion VND (30.3 billion USD), with more than 1.07 million customers.
By March 31 the central bank had allocated 4.78 trillion VND to the Vietnam Bank for Social Policies, which offered loans to assist 1.2 million labourers.
At the same time, the SBV has stepped up cashless payments and digital transformation, and instructed credit institutions to improve asset quality, control credit quality and prevent bad debts.
As a result, the bad debt ratio in the domestic credit system stood at a safe level of 1.55 percent in late May./.
