SBV targets credit growth of 8-10pct in last six months
State Bank of Vietnam (SBV) is targeting to achieve a credit growth of 8 to 10 percent in the remaining six months of this year.
Besides this, SBV also plans to regulate money supply in accordance with market fluctuations and the government’s instructions so as to tame inflation at between 6pct-8pct and for total payment instruments to grow 14pct-16pct. Balance of international payments surplus is projected to reach over USD 3 billion and economy is anticipated to grow 5.2pct-5.7pct so as not to place burdens on inflation for the following years.
In addition, scrutiny of the ratio of outstanding loans in discouraged sectors to total lending would be strengthened in order for credit growth to reach 8pct-10pct for the second half of the year. Agricultural and rural sectors together with exporting, small and medium sized enterprises and supporting industries would be given the first borrowing priority.
According to SBV’s Instruction No. 01 dated 13 February 2012, credit growth is projected at 15pct-17pct for this year. Yet, this agency reported the rate as of 30 June merely edged up 0.76pct versus the end of 2011. Total payment instruments including valuable papers issued by credit institutions for each other as of late June picked up 5.57pct over the end of last year.
What is more, this agency would keep close eyes on enterprises’ operations for timely recommendation of fiscal and credit cures in order to release inventories, ease businesses’ burdens, boost production and consumption. Both enterprises and credit institutions should promptly deal with bad debts to enhance the economy’s liquidity.
Also, lenders should be encouraged to proactively review and assess borrowers’ repayment capacity, which would then facilitate debt restructuring, write-off, interest payment reduction and the like.
Another measure is to ensure compliance with the central bank’s regulations on interest rates. It is important that commercial banks review existing loan balance and probably consider interest rate cuts.
Furthermore, the central bank would keep track of foreign currency market for flexible forex rate management to be line with macroeconomic conditions. Further steps should be carried out with a view to impede dollarisation and enhance dong stabilisation. Foreign currencies should be gathered in the banking sector in order to effectively meet the legitimate demand of foreign currencies. Also, gold market stabilisation scheme would be promptly finalised and then implemented.
Importantly, investigation and supervision of banking operations as well as statistical work, analysis and forecasting would be strengthened. Also, it is vital to step up implementation of the scheme on non-cash payment promotion in 2011-2015 and administrative reforms.
Category: Finance
