Vietnam Continues to Control Credit Growth at Reasonable Pace Till End-2008

The State Bank of Vietnam (SBV) will continue its flexible monetary policy to control total money supply and credit growth rate at a reasonable speed by the end of this year.

The credit rate will be adjusted so that it will not hurt production, especially export, agriculture production and rural development.

The SBV will ensure safety for solvency of credit institutions, stabilize monetary market, and flexibly regulate open market and refinancing operations.

The central bank affirmed that it will maintain compulsory reserve rate as well as base interest rate, discount and refinancing rates as at present.

The bank said total cash supply in July was still under the control, increasing 1.34 per cent from June and 5.64 per cent from the end of 2007 and expected to be stable by the end of this year.

Total deposits at credit institutions in July were estimated to increase 1.65 per cent from June, of which deposits in Vietnam dong inched up 0.81 per cent and deposits in USD rose 3.31 per cent. The deposits went up 9.42 per cent from the beginning of this year.

Total outstanding loans for the economy in July edged up 0.7 per cent against the previous months, of which loans in VND increased 0.59 per cent and loans in foreign currencies rose 1.07 per cent. The loans surged 18.36 per cent from the end of 2007.

The SBV said the lending growth is because of credit institutions providing big loans for agriculture sector, export and import of essential products. (VNA)