Monetary loosening has been observed recently to facilitate economic growth, according to director of ANZ’s Financial Market Department Phan Thi Thanh Binh.
The State Bank of Vietnam (SBV) has lately given the green light to credit growth of above the 17 percent cap rate apart from debt extension, postponement and restructuring.
Moreover, Governor of SBV assumed mobilisation rate could drop further to below 8pct if the CPI rate for this year falls to 7pct whereas basic interest rates were already cut down by 5pct in the first half of the year.
In addition, fiscal policy has apparently been softened in that 30 trillion dong of the state budget 2013 would be disbursed in advance for this year investment. Also, some 21 trillion dong is expected to be monthly pumped out into the economy for the remaining months.
As such, this agency has attempted to bolster the troubled economy burdened with stagnant capital flows, mounting bad debts, bankruptcy and enormous inventories. Also, Governor insisted inflation would not return in the following year and monetary tightening would be taken into account this fourth quarter.
In all likelihood, export and import would then enjoy some improvement, which may yet hurt the current stable exchange rate between US dollar and dong due to weak demand, she added.