At the online conference of the Prime Minister with the business community and localities this morning (September 26), the Governor of the State Bank of Vietnam (SBV), Ms. Nguyen Thi Hong said that in the upcoming period, this agency will increase credit limit for banks and adjust interest rates accordingly as committed. In particular, focusing on lending to cooperatives. Although this activity has been carried out, it is necessary to improve the performance of the cooperative.

In the banking industry update report, BIDV Securities (BSC) stated that many banks have been granted additional credit room, focusing mainly on joint stock commercial banks. The extension of the credit room depends on the situation of the banks, the risk level of the credit portfolio and the level of interest rate support.

The State Bank and the system of credit institutions have actively and drastically implemented many credit support solutions to remove difficulties for production, business and circulation of goods, contributing to controlling inflation, maintaining macroeconomic stability, supporting economic growth.

As of September 21, bank credit has increased by 7% over the same period, the payment system of private banks with localities is smooth. Simultaneously with that is the re-issuance of the debt structure and keeping the debt group unchanged. According to calculations, lending interest rates have decreased to 28,000 billion dong, expected to continue to decrease. At the same time, the SBV will focus on controlling inflation.

On the basis of the economic growth and inflation targets set by the National Assembly and the Government, the State Bank has developed oriented credit growth targets for the whole year, with adjustments in line with developments and actual situations, with credit growth targets regularly reviewed and considered for each credit institution on the basis of operational situation, financial capacity and management, administration and ability to expand credit in a healthy manner, giving priority to credit institutions to reduce lending interest rates to contribute to solving difficulties for businesses and people.

For foreign currency loans, the State Bank also has policies to support exporters in general in reducing borrowing costs. The State Bank has guided to continue lending in foreign currencies to pay for the import of goods and services in order to implement the plan for production and trading of goods for export through Vietnam's border gates when the borrower has enough foreign currency from production and business revenue to repay the loan.

The State Bank of Vietnam has removed the regulation on lending time limit for short-term loan capital needs to meet domestic capital needs in order to implement the plan for production and trading of goods for export through Vietnam's border gates, where the borrower has enough export revenue to repay the loan. However, the Governor of the SBV encourages businesses to borrow in VND, in order to ensure the safety of the system.

Kylie Nguyen