Vietnam’s credit growth estimated at 4.81%: central bank

Tuesday, 2020-09-22 17:32:44
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Credit growth as of mid-September was estimated at 4.81%.
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NDO - Vietnam’s outstanding loans as of mid-September grew by 4.81% compared with the end of 2019 while M2 money supply rose by 7.58%, as announced by the State Bank of Vietnam (SBV) at a press conference on September 22.

Since the start of the year, the central bank has cut interest rates by 1 to 1.5 percentage points in order to support banks’ liquidity and make loans cheaper for businesses.

The short-term lending rate for priority sectors currently stands at around 5%, which is low compared with other countries with similar conditions to Vietnam, said Pham Chi Quang, deputy head of the SBV’s monetary policy department.

With regards to exchange rate regulation, despite some periods of volatility due to the coronavirus pandemic, stability in the foreign exchange market has been maintained.

As of September 21, the exchange rate had risen by 0.16% compared with the end of 2019.

At the press conference, the SBV also stated that Vietnam’s bad debt ratio continues to be kept at under 2%.

Nguyen Thi Hong, the central bank’s deputy governor, said that the SBV will continue to pursue a proactive and flexible monetary policy in combination with fiscal and other macroeconomic policies in order to maintain stability and support a rapid economic recovery.