Governor of the State Bank of Vietnam Nguyen Van Binh has stated that the goal of 12-14 percent credit growth for this year is achievable if the banking sector does its best, even when the rate recorded in the first half of the year is a modest 3.52 percent.

At the banking sector’s conference in Hanoi on July 9, Binh called attention to the fact that credit growth in the second half of the year usually rises fast, even doubles the rate in the first half, which is the reason why he believes the rate can reach 10 percent by the end of the year.

However, the banking sector itself must make all-out efforts to ensure the goal be fulfilled, he said, adding that the State Bank will not revise down the credit growth target. The Governor said the State Bank will continue to implement macro-economic measures to remove bottlenecks for the credit flow, such as bad debts and sluggish demand.

Regarding other pressing issues in the time ahead, he said with the budget deficit was allowed to increase to 5.3 percent of GDP and the rising amount of Government bonds, there is the need to watch out for inflation.

On the settlement of bad debts, he underscored the need to restructure the purchased debts. According to Binh, the Vietnam Asset Management Company has bought 50 trillion VND (2.4 billion USD) worth of bad debts so far and plans to buy 70-100 trillion VND (3.4 – 4.7 billion USD) this year.

In addition, the governor said several major commercial banks will also undergo reshuffling in the second half of this year.-VNA