SBV Governor calls for credit growth, quality

During a teleconference in Hanoi on April 14, Director of the SBV’s Credit Department for Economic Sectors Nguyen Tuan Anh said that as of March 31, the economy’s outstanding debts had surpassed VND9.46 quadrillion, up 2.93% from late 2020.

Credit growth in agro-forestry-fisheries reached 2.42%, industry 3.04%, and real estate 3%. Meanwhile, credit in securities hit VND45.3 trillion (US$1.96 billion), down 1% from late 2020.

Hong said the SBV has set credit growth at nearly 12% this year, with credit in areas of risk to be brought under control.

Violations of banking activities have been mostly found in credit activities. At present, total outstanding debts are equivalent to 140% of the country’s GDP.

As of late March, banks had restructured debt repayments for nearly 263,000 customers with outstanding debts of more than VND353 trillion, and exempt or cut interest rates for over 660,000 customers with more than VND1.27 quadrillion. Credit organisations have lent over VND3 quadrillion to more than 452,000 clients since January 23.

In the near future, Anh said the SBV will realign monetary policy with macro-economic and monetary developments as well as the pandemic situation at home and abroad.

At the same time, it will closely control credit in areas of risk, such as securities, real estate, and build-operate-transfer (BOT) and build-transfer (BT) transport projects, while managing risks in lending.

The SBV will prioritise the provision of higher credit quotas for credit organisations that actively reduce lending rates and also encourage financial companies to cut lending rates.

The sector will tackle the difficulties faced by customers who were hit by COVID-19 and natural disasters.

Credit institutions were asked to continue creating favourable conditions for individuals and businesses to access credit, and to work with localities to step up a programme connecting banks with companies.