CREDIT GROWTH SHOWS POSITIVE SIGNS

As of May 25, credit growth expanded 6.53%, higher than the rate of 5% in the same period in 2016 and 4% in 2015. The figure showed positive signs amidst unfavorable economic context and slow public investment disbursement, said a senior official.

Deputy Governor of the State Bank of Viet Nam Nguyen Thi Hong made the announcement at a press briefing on management of the monetary policy and the banking system in the first half of 2017 in June 5 in Ha Noi.

Ms. Hong revealed that in the January-June period, the momentary and foreign exchange market was positive and stable.

In early 2017, the SBV set a credit growth of 18%. As of May 25, credit growth hit 6.58%, the record high over the last eight years. The outcome was extremely positive in the context of difficult public investment disbursement.

So far, the SBV was able to stabilize and even cut lending interest rates.

SBV Governor Le Minh Hung ordered credit institutions to control credit risks; balance capital in real estate, BT, BOT. Especially, credit growth in real estate was slower in comparison with the same period last year.

Regarding foreign exchange rates, the SBV kept a close watch on the development to announce appropriate central exchange rates and stabilize foreign exchange market. So far, demands on foreign currencies were properly met.

With respect of NPLs, the Deputy Governor said that the SBV worked with other ministries and agencies to make a resolution on settlement of NPLs and a draft law on supplement to the Law on credit institution which will be submitted to the National Assembly.

Source: VGP