Vietnam PM: Central Bank to Keep Close Watch on Credits

Prime Minister Nguyen Tan Dung has requested that the State Bank of Vietnam, the country’s central bank, keep a close watch on credits by commercial banks while stabilizing the forex rates as part of efforts to achieve a 5 per cent GDP growth and actively curb inflation this year.

 

PM Dung had a meeting with the SBV’s officials on the afternoon of June 26. At the meeting, they discussed inflation, which is still up 10.27 per cent, the economy, which grew only 3.9 per cent in the first half, and loans for the economy, which expanded 17 per cent.

 

“The SBV must have reasonable adjustments in the monetary policies in the second half of this year to help achieve the GDP growth of 5 per cent and have active measures to tame inflation for the 2009-2010 period,” Mr Dung emphasized.

 

The SBV must closely supervise bank loans, which have a 4 per cent interest rate subsidized by the government, and tighten control over loans for stock and realty transactions, Mr Dung noted.

In the week ending Jun 25, local banks and financial companies extended soft loans to VND357.065 trillion (US$21 billion) under the government’s subsidized lending program launched in early February.

 

This year, the SBV said it may cap the credit growth at 30 per cent, state media said. (chinhphu.vn, SBV)