Prime Minister Pham Minh Chinh has issued Dispatch No. 122 to the Governor of the State Bank of Vietnam, requesting stronger measures to manage credit in 2024.
According to the dispatch, due to the complex global situation and the challenges faced by local businesses and residents, along with the severe damage caused by Storm No. 3 and natural disasters in various provinces, accessing credit has become difficult, and bad debts in the banking sector have increased.
A social housing project in Thu Duc City, Ho Chi Minh City. (Photo: NLD)
To further enhance credit management in 2024 and strengthen the state management of monetary and banking activities, thereby boosting economic growth and striving to achieve the highest possible targets in the socio-economic development plan for 2024, the Prime Minister has requested the State Bank to focus on several key tasks.
Specifically, the State Bank should instruct credit institutions to make greater efforts to reduce lending interest rates by cutting costs, simplifying administrative procedures, and promoting the application of information technology and digital transformation…
“Effectively implement and ensure transparency in preferential credit packages that are suitable for the characteristics of each credit institution and support key sectors to drive economic growth, especially social housing and worker housing credit packages, and credit packages for forestry and fishery products…,” the dispatch states.
According to the Prime Minister, credit institutions need to promote their role and strengthen their social responsibility and business ethics by supporting and sharing difficulties with people and businesses facing hardships.
Credit institutions should focus on lending to production and business sectors, priority areas, and economic growth drivers, including digital transformation, green transformation, climate change response, circular and sharing economies, science, technology, and innovation…
At the same time, they must tightly control credit in risky areas, ensuring safe and effective lending. They should also continue to provide policies to facilitate access to credit for businesses and individuals, and promote lending for production, business, and consumer needs during the year-end and Tet holiday in 2025.
The State Bank is also requested to instruct credit institutions to proactively review and identify borrowers affected by Storm No. 3 to apply support measures and remove difficulties for them through debt restructuring, interest exemption or reduction.
In addition, the State Bank should provide new loans to restore production and business activities after the storm, in accordance with current regulations, and handle debts of affected borrowers accordingly.
The Prime Minister requested the State Bank to take the lead in coordinating with relevant agencies to proactively, flexibly, timely, and effectively manage monetary policy, in close coordination and harmony with a reasonably expanded fiscal policy and other macro policies.
He emphasized the need to vigorously and effectively implement tasks and solutions related to managing interest rates, exchange rates, credit growth, open market operations, money supply, and reducing lending interest rates… to provide capital for the economy at a reasonable cost.
“Rhythmically and harmoniously inject and withdraw money, without causing liquidity pressure on the banking system, to support people and businesses in quickly overcoming the consequences of Storm No. 3, recovering and developing production and business activities, promoting economic growth, ensuring macro-economic stability and inflation control, and maintaining safety in banking operations and the system of credit institutions,” the dispatch states.
The State Bank is also requested to resolutely, effectively, and promptly implement credit solutions that are suitable for the macroeconomic and inflation situation and meet the capital needs of the economy, while removing difficulties for people and businesses and supporting production and business development, creating jobs, and livelihoods for people, in the spirit of harmonious interests and shared risks.
It is also necessary to ensure that credit capital is injected into the economy in a practical and effective manner, absolutely avoiding bottlenecks, delays, or misallocation, and preventing a mechanism of favoritism and negativity in the credit allocation process of the credit institution system.
The Prime Minister emphasized the target of achieving a 15% credit growth rate in 2024.
The State Bank must continue to effectively and strongly implement measures within its authority to reduce the lending interest rate of the credit institution system, thereby supporting people and businesses in production and business development, generating revenue and profits, and repaying bank loans.
In addition, the State Bank is assigned to intensify inspection, examination, control, and strict supervision of credit granting and interest rate publication by credit institutions, promptly and strictly handling violations in accordance with regulations, and implementing effective solutions to handle bad debts of the credit institution system.
The Prime Minister has assigned Deputy Prime Minister Ho Duc Phoc to directly direct the State Bank and relevant agencies to implement the tasks assigned in this dispatch.
