Credit to the economy had grown by some 2.28 percent as of March 25 compared to the end of 2018 (Photo: VNA) Hanoi (VNA) – As of March 25, the M2 money supplyhad risen 2.67 percent, while credit to the economy had grown by some 2.28percent compared to the end of 2018, according to the State Bank of Vietnam(SBV).
At a press conference in Hanoi on April 1, thecentral bank reported that in the first three months of 2019, exchange ratesand the foreign exchange market remained stable, supported by the abundantforeign currency supply, good liquidity in the market, and creditorganisations’ continued purchase of foreign currencies from theirclients.
These have created optimum conditions for theSBV to continue buying foreign currencies to add to foreign exchange reserves,it noted.
SBV Deputy Governor Nguyen Thi Hong said thecentral bank has set up credit growth targets for each institution with highertargets for banks fulfilling capital safety criteria ahead of schedule.
It has kept a close watch on credit growth ateach institution so as to orient their lending activities towards prioritisedfields, ensure that they provide favourable conditions for people andbusinesses to access, and control loans in foreign currencies.
Hong said that in the coming time, the SBV willcontinue to steer monetary policy towards ensuring that the M2 money supply andcredit grow by about 13 percent and 14 percent, respectively, while taking intoaccount actual developments in the market.
She added the SBV will keep closely monitoringthe restructuring of credit organisations and the settlement of non-performingloans (NPLs), which must be aligned with measures to minimise new NPLs andimprove credit quality.
The central bank reported that as of January 31,the whole credit organisation system had handled about 204.4 trillion VND (over8.8 billion USD) of NPLs, equivalent to over 40 percent of the total of thiskind.–VNA
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