Banks urged to lower interest rates

January 22, 2014 | 08:52

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The State Bank of Viet Nam (SBV) recently instructed credit institutions to continue to ease access to loans for enterprises by lowering interest rates, in a bid to assist struggling businesses and guarantee efficient bank operations this year.

The State Bank of Viet Nam's headquarters in Ha Noi. The central bank asked credit institutions to lower interest rates for enterprises' loans this year. — VNS File Photo

The central bank said an overall lending growth rate of 12-14 per cent, and total money supply expansion of 16-18 per cent, would foster production and business activities, support economic growth and help curb inflation this year.

According to Government portal chinhphu.vn, the SBV urged the institutions to cut costs and ensure financial safety, and it would intensify supervision of the monetary market for banking system security.

It would take measures to facilitate co-operatives and households to borrow money more easily, while ensuring flexible policies to support prioritised sectors (agriculture and rural areas, support industries, small- and medium-sized enterprises, and exports).

It would maintain "reasonable" policy interest rates, including the refinancing rates, to assist home buyers and deal with bad debts in the property market. Debt trading through the Viet Nam Asset Management Company would be sped up.

SBV would also tightly control foreign currency and gold markets to maintain the value of the Vietnamese dong and exchange rate stability, and improve national foreign exchange reserves as well as the international payment balance.

VNS

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