REDUCE LENDING INTEREST RATES IN 2024
On March 05, 2024, the Prime Minister issues the Official Telegram No. 18/CD-TTg on managing credit growth in 2024
In accordance with the Official Telegram, 2024 is a year of acceleration, of significant importance in the successful implementation of the 05-year socio-economic development plan for the 2021 - 2025 period.
The world and regional situation is forecast to continue to have complicated and unpredictable developments; consequences of the Covid-19 pandemic still have a lasting impact. In the domestic economy, there are opportunities, advantages, difficulties, and challenges mixed, but the difficulties and challenges are more numerous;
Within that, inflationary pressure is still powerful; production and business activities in some industries and fields are still difficult; lending interest rates are decreased but not commensurate with the decrease in deposit interest rates; credit growth in the first 02 months of 2024 is decreased compared to the end of 2023.
In order to continue to improve the efficiency of managing monetary policy tools and drastically implement solutions on managing interest rates and credit, the Prime Minister requires:
The State Bank of Vietnam to assume the prime responsibility for, and coordinate with relevant agencies in:
- Urgently and comprehensively reviewing results of granting credit of the system of credit institutions for the economy, each industry and each field; results of granting credit of each credit institution and commercial bank up to the present time to have solutions to manage credit growth and interest rates in 2024
- Monitoring closely international and domestic economic developments and situations to manage monetary policies in a proactive, flexible, prompt and effective manner; flexibly, harmoniously and reasonably managing between interest rates and exchange rates in accordance with the market situation, macroeconomic developments and goals of monetary policies
- Immediately implementing executive solutions to continue to reduce lending interest rates associated with increasing the access of credit capital to support people and enterprises in developing production and business,
- Promoting and strengthening inspection, examination, control and strict supervision of granting credit by credit institutions:
Strictly prohibiting the grant of credit in contravention of law, to the wrong subjects or the grant of credit to leadership boards, executive boards and related people of credit institutions, enterprises in the ecosystem, backyard enterprises, etc. with preferential interest rates.
At the same time, implementing tools to control inflation and reduce, and limit the increase in bad debt for credit institutions.
The State Bank of Vietnam to direct and request credit institutions in:
Monitoring closely directions of the Government and the State Bank of Vietnam to continue to reduce lending interest rates (cost reduction; simplifying administrative procedures, strengthening the application of information technology, digital transformation, etc.);
- Publicly announcing the average lending interest rate for people and enterprises to conveniently access credit and choose banks to borrow capital.
- Continuing to direct credit capital to production and business areas, prioritized areas and traditional economic growth drivers such as consumption, investment, export, digital transformation, response to climate change, green transformation, circular economy, science, technology and innovation, etc.
