Vietnam prime minister requested the State Bank of Vietnam to speed up restructuring weak commercial banks, streamlining loan structure and be flexible in bad debt handling.
The request was given at the government’s two day regular meeting on July 2-July 3.
The State Bank of Vietnam, the country’s central bank, is expected to review the reality of credit growth at credit institutions as well as of the whole banking system, review monetary targets to timely propose solutions to navigate credit reasonably.
The central bank is also requested to regulate interest rates following targeted inflation of 7-8 percent in 2012, quickly clear the bottle-necks in money flows to help businesses access to credit.
The government said it prioritised curbing inflation, stabilising macro economy not only in 2012 but also for the following years. The government aimed at reasonable GDP growth of 5.2-5.7 percent but the more important thing is macro-economic stability, and it will chase growth at the expenses of high inflation.