Credit growth will total 12.96 percent for the first seven months of theyear, forecasts State Bank Governor Nguyen Van Giau.
The growth is planned to reach 25 percent at year's end, he told reporters at the monthly Government meeting on August 2.
The focus of monetary policy later in the year would be to reach the25-per-cent credit growth and 6.5-per-cent economic growth.
The Governor was responding to speculation that it might not bepossible to match the credit-growth plan and ensure enterprises haveaccess to credit.
The Government and the centralbank have kept the prime rate unchanged at 8 percent for nineconsecutive months while urging domestic lenders to keep borrowing costsbelow a yearly 12 percent to facilitate credit access.
But the interest rate for loans is mostly over 14 percent and the ratefor consumers has gone as high as 17 percent per annum.
The preferential 12-13 percent rate is available only to exporters,agricultural enterprises and small- to medium- enterprises.
The State Bank of Vietnam announced on August 2 that it wouldincrease the supply of money available for banks to lend through anincrease of trading volume in the open market.
"Ifpossible this week, I will reduce the compulsory capital reserve forthose banks which have hastened their lending to rural areas andagricultural production," bank governor Giau said.
Agribank would be injected with mid- and long-term capital of about 4trillion VND (208.33 million USD). The total capital to be madeavailable for rural areas and agricultural production was estimated at30 trillion VND (1.56 billion USD).
The Bank ofVietnam's management is regarded as cautious and flexible sincesubsidised interest rates ended last year. The management works toprevent the return of high inflation while helping the Governmentachieve economic growth of at least 6.5 percent this year.
Vietnam 's economic growth accelerated in the second quarter asrevived bank lending helped boost manufacturing and consumer spending.
Gross Domestic Product (GDP) rose 6.4 percent in thethree months to June from a year earlier and a first-quarter expansionof 5.83 percent.
The economy grew 6.16 percent to June 30 against the first six months from a year earlier.
The inflation rate has slowed with consumer prices up only 0.06percent in July against June - the lowest July increase since 2004 andthe slowest increase since the beginning of the year.
Annualised inflation to July 31 stood at 8.67 percent against the same seven months of 2009./.
The growth is planned to reach 25 percent at year's end, he told reporters at the monthly Government meeting on August 2.
The focus of monetary policy later in the year would be to reach the25-per-cent credit growth and 6.5-per-cent economic growth.
The Governor was responding to speculation that it might not bepossible to match the credit-growth plan and ensure enterprises haveaccess to credit.
The Government and the centralbank have kept the prime rate unchanged at 8 percent for nineconsecutive months while urging domestic lenders to keep borrowing costsbelow a yearly 12 percent to facilitate credit access.
But the interest rate for loans is mostly over 14 percent and the ratefor consumers has gone as high as 17 percent per annum.
The preferential 12-13 percent rate is available only to exporters,agricultural enterprises and small- to medium- enterprises.
The State Bank of Vietnam announced on August 2 that it wouldincrease the supply of money available for banks to lend through anincrease of trading volume in the open market.
"Ifpossible this week, I will reduce the compulsory capital reserve forthose banks which have hastened their lending to rural areas andagricultural production," bank governor Giau said.
Agribank would be injected with mid- and long-term capital of about 4trillion VND (208.33 million USD). The total capital to be madeavailable for rural areas and agricultural production was estimated at30 trillion VND (1.56 billion USD).
The Bank ofVietnam's management is regarded as cautious and flexible sincesubsidised interest rates ended last year. The management works toprevent the return of high inflation while helping the Governmentachieve economic growth of at least 6.5 percent this year.
Vietnam 's economic growth accelerated in the second quarter asrevived bank lending helped boost manufacturing and consumer spending.
Gross Domestic Product (GDP) rose 6.4 percent in thethree months to June from a year earlier and a first-quarter expansionof 5.83 percent.
The economy grew 6.16 percent to June 30 against the first six months from a year earlier.
The inflation rate has slowed with consumer prices up only 0.06percent in July against June - the lowest July increase since 2004 andthe slowest increase since the beginning of the year.
Annualised inflation to July 31 stood at 8.67 percent against the same seven months of 2009./.
