The banking system pledges to supply adequate capital for the economy. (Photo: tinnhanhchungkhoan.vn)Hanoi (VNS/VNA) - The State Bank of Vietnam could increase credit growthlimits for credit institutions this year or even launch stronger monetarypolicies to aid the country’s post-pandemic growth, Governor Le Minh Hung hassaid.
Stronger monetary policies could be raised if necessary, he said at a Government meeting late last week.
“The banking system pledges to supply adequate capital for the economy, keepstable foreign exchange rates and is ready for necessary measures to intervenein the market if there were developments threatening macro-economic stability,”Hung said.
“Increasing credit growth limits could be put into consideration. If necessary,stronger policies such as refinancing major projects of key economic sectorscould be raised.”
Hung said the central bank was asking credit institutions to cut costs andlower profit targets so lending rates could be decreased to support businesseswhile the banking system’s operation quality and safety enhanced.
Decree 01 about restructuring loans affected by the pandemic could berevised to create favourable conditions for enterprises.
The central bank’s statistics showed loan payment deadlines were restructuredfor nearly 260,000 customers with outstanding loans worth nearly 18 trillionVND (775.8 million USD). Interest rate cuts and exemptions were offered to morethan 421,000 customers to the tune of 1.3 quadrillion VND. Banks also providenew loans worth 1.1 quadrillion VND to 240,000 customers at rates 0.5-2.5percentage points lower than pre-pandemic.
Hung said that commercial banks must help enterprises overcome the difficulttime together.
Efficiently implementing debt restructuring and lowering the lending rate andloan expenses was an important factor to maintain the confidence ofinvestors in the Vietnamese economy and to attract investment, Hung said.
Regarding the demand for credit, he said credit growth was modest in Apriland May at just 0.12 percent and 0.53 percent respectively due to the impactsof the pandemic. However, credit growth expanded faster in June, at the rate of1.28 percent. As of June 29, credit growth expanded at 3.26 percent.
Hung also said foreign exchange rates were kept stable in the first halfof this year, with a devaluation of about 0.2-0.3 percent, which together witha record foreign currency reserve contributed largely to controlling inflation.
At the meeting, Prime Minister Nguyen Xuan Phuc asked the central bank to havemore flexible and effective monetary policies to stimulate demand and economicgrowth, at the same time to maintain macroeconomic stability, control inflationand consolidate the confidence of investors.
PM Phuc stressed Vietnam would not tighten monetary policies this year, aimingfor credit growth to expand by at least 10 percent./.
Stronger monetary policies could be raised if necessary, he said at a Government meeting late last week.
“The banking system pledges to supply adequate capital for the economy, keepstable foreign exchange rates and is ready for necessary measures to intervenein the market if there were developments threatening macro-economic stability,”Hung said.
“Increasing credit growth limits could be put into consideration. If necessary,stronger policies such as refinancing major projects of key economic sectorscould be raised.”
Hung said the central bank was asking credit institutions to cut costs andlower profit targets so lending rates could be decreased to support businesseswhile the banking system’s operation quality and safety enhanced.
Decree 01 about restructuring loans affected by the pandemic could berevised to create favourable conditions for enterprises.
The central bank’s statistics showed loan payment deadlines were restructuredfor nearly 260,000 customers with outstanding loans worth nearly 18 trillionVND (775.8 million USD). Interest rate cuts and exemptions were offered to morethan 421,000 customers to the tune of 1.3 quadrillion VND. Banks also providenew loans worth 1.1 quadrillion VND to 240,000 customers at rates 0.5-2.5percentage points lower than pre-pandemic.
Hung said that commercial banks must help enterprises overcome the difficulttime together.
Efficiently implementing debt restructuring and lowering the lending rate andloan expenses was an important factor to maintain the confidence ofinvestors in the Vietnamese economy and to attract investment, Hung said.
Regarding the demand for credit, he said credit growth was modest in Apriland May at just 0.12 percent and 0.53 percent respectively due to the impactsof the pandemic. However, credit growth expanded faster in June, at the rate of1.28 percent. As of June 29, credit growth expanded at 3.26 percent.
Hung also said foreign exchange rates were kept stable in the first halfof this year, with a devaluation of about 0.2-0.3 percent, which together witha record foreign currency reserve contributed largely to controlling inflation.
At the meeting, Prime Minister Nguyen Xuan Phuc asked the central bank to havemore flexible and effective monetary policies to stimulate demand and economicgrowth, at the same time to maintain macroeconomic stability, control inflationand consolidate the confidence of investors.
PM Phuc stressed Vietnam would not tighten monetary policies this year, aimingfor credit growth to expand by at least 10 percent./.
VNA
