Credit growth screwed down
Banking credit growth might be kept 12 per cent until the year’s end, although the government had set a 20 per cent cap early this year.
“Credit growth at 12 per cent would be more rational for the purposes of stabilising the macroeconomic situation,” said State Bank deputy governor Nguyen Dong Tien.
The previous 20 per cent cap, Tien added, was unrealistic.
The move comes as Vietnam struggles to cap inflation at a targeted 18 per cent for 2011. The consumer price index (CPI) increased 17.5 per cent within the first 10 months, while the nation’s economy is under strong exchange rate pressures.
The measure comes as local enterprises struggle to borrow funds from banks. The Ministry of Planning and Investment reported nearly 49,000 enterprises had bankrupted and stopped operating during the past nine months, up 21.8 per cent year-on-year.
“Unless we do not take drastic measures, the 18 per cent target is still a challenge,” said Government Office chairman Vu Duc Dam.
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