SBV to continue flexibly managing monetary, fiscal policies

During a meeting in Hanoi on June 11 to announce banking activities in the first half, SBV Vice Governor Nguyen Thi Hong said the central bank will support monetary market stabilisation and direct interest rates that suit macro balances, inflation rate and monetary market, making it easier for credit organisations to reduce lending rates on the basis of ensuring safe operations, financial health and reducing bad debts. 

She added that outstanding loans have grown since early this year, targeting manufacturing and trade, especially in priority fields. As of May 31, credit went up 6.16% from the late 2017. 

Lending rates for priority fields have decreased, with State and commercial banks cutting about 0.5% per year in interest rates for consumers with good credibility. 

At current, interest rates of short-term loans stand at 6-9% while those of mid and long-term loans are about 9-11%. Those with high credibility and financial capability could enjoy rates of 4-5% per year. 

The SBV will also flexibly manage central rates, contributing to stabilising the macro economy. It bought a high amount of foreign currencies to raise foreign reserves, thus strengthening trust in Vietnamese dong. Gold market remains stable. 

It took a number of measures to speed up cashless payment and directed credit organisations apply technology in technical infrastructure in payment to enhance security and ensure consumers’ interests. 

As of late March, there were 17,887 operating automated teller machines (ATMs) and 278,768 points of sale (POS) nationwide, not to mention a huge volume of online transactions.