IMF Cautions Vietnam about High Credit Growth
An official from IMF has just alerted that Vietnam’s high credit growth since early 2009 may bring about some adjustments in Vietnam’s monetary polices.
The IMF official told a meeting on Vietnam’s socioeconomic issues with donors held by the Ministry of Planning and Investment recently.
The State Bank of Vietnam, the country’s central bank, has unveiled total outstanding loans lent by local banks to the economy had expanded 14.91 per cent since start of 2009 and M2 jumped 14.55 per cent.
Analysts have raised concerns about quality of credit, which may balloon inflation this year.
Tran Du Lich, a leading economist from the National Assembly’s Economics Committee warned that the economy will face invisible threats if part of these soft loans is poured into stocks and realty sector.
Meanwhile, Deputy Governor of the SBV, Nguyen Dong Tien told reporters that credit growth level is not high and is in line with the government’s demand stimulus efforts.
“We [the SBV] will continue pursue monetary and fiscal policies flexibly and carefully, and credit growth will be capped at 25 per cent, a right level to help maintain economic growth and curb inflation,” Tien said.
The government of Vietnam said to curb inflation to 6 per cent this year. (Investment, SBV)
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