Vietnam posted a credit growth rate of 9.06 percent as of June 30 compared to the end of last year (Photo: VNA)

Hanoi (VNA) – Vietnam posted a credit growth rate of 9.06 percent as of June 30 compared to the end of last year, which did not pressure interest rates, Governor of the State Bank of Vietnam (SBV) Le Minh Hung said on July 21.

He made the announcement at a teleconference to implement a National Assembly resolution on bad debt settlement and a plan on credit institution restructuring and bad debt settlement for 2016-2020.

Credit in the economy has increased rapidly and evenly month on month, which was not the case in previous years, he noted, adding that loans were mainly poured into production and business activities.

Hung said the central bank kept interest rates stable in the first half of 2017 despite high inflation in late 2016 and earlier this year.

[WB: Vietnamese economy sees positive changes in first half]

As inflation is under control and the SBV wants to facilitate business activities, the bank ordered credit institutions to cut interest rates for short-term loans in prioritised fields by 0.5 percent from July 10.

The prioritised fields are agricultural and rural development, exports, activities of small and medium-sized enterprises, development of support industries and high-tech companies.

Interest rates are at about 6 – 6.5 percent for short-term loans and 8 – 10 percent for medium- and long-term loans, the Governor added.-VNA