SBV Issues Measures for Macroeconomic Stabilisation

Governor of the State Bank of Vietnam (SBV), Nguyen Van Giau, on November 4 issued Directive No 04/CT-NHNN implementing monetary, credit and banking measures, contributing to stabilising market prices in the last months of 2010 and early 2011.

 

Solutions SBV requires of credit institutions include: Enhancing capital mobilisation locally and abroad through appropriate measures prescribed by Vietnam's law and must not apply forms of unfair competition that negatively affect currency markets; Control the speed, scale and structure of lending to balance mobilised capital, carry out regulations on safe banking operation; Control payment guarantees to domestic and foreign loans, lending to securities trading, real estate and business consumers.

 

Credit institutions must meet borrowing demand for efficient agricultural production and rural exports, small and medium enterprises, to supply the demand for capital goods and essential services for manufacturing and consumption. For central provinces damaged by storms and floods, lenders should review the implementation of restructuring repayment periods, reduction or exemption of loan interests as prescribed by the law and consider new loans to restore and develop production and business. Credit institutions must carry out strict control on the mobilisation and lending of foreign currency, not allowing liquidity risks, and control foreign currency interest rates and exchange rates; fix deposit and lending rates, foreign exchange rates in accordance with the law and the policy of the government.

 

The governor asks credit institutions to provide correct and timely information about the operations of their credit institutions as prescribed by law and the requirements of SBV.