Tightening control of credits in various fields hinh anh 1At the press conference (Photo: VietnamPlus)

Hanoi (VNA) –
In the first six months of 2019, credit flowing into production, business and prioritized fields as well as potential risk areas were under stricter control.

At a press conference in Hanoi on June 13 afternoon, the State Bank of Vietnam (SBV) revealed the results of the management of monetary policies and banking operations in January – June and plans for the remainder of 2019.

Credit growth expands by 5.75 percent

Speaking at the press conference, Nguyen Quoc Hung, Director of the SBV Credit Department, reported that credit growth expanded by 5.75 percent as of June 10, 2019, the lowest level compared to 7.88 percent in 2018 and 9.06 percent in 2017.

Credit in production, business and the Government’s prioritized fields as well as areas with potential risks were better controlled, he said.

Specifically, credit for exports rose by 13 percent; for businesses applying high technology up 14.33 percent; for small-and medium-sized enterprises (SMEs) up 5.04 percent; for agriculture and rural development up 5.0 percent; and for the supporting industry up 4.11 percent, Hung noted.

As of June 10, total means of payment increased by 5.17 percent while credit growth expanded by 5.75 percent. The respective yearly growth target is 13 percent and 14 percent.

According to the SBV, the management of interest rates in the period was in line with macroeconomic development and the monetary market. 

The State Bank directed credit institutions to review and balance finance, cut costs and apply reasonable lending interest rates.

Lending interest rates ranged from 6-9 percent per year for short-term loans and 9-11 percent per year for medium and long-term ones.

Tightening control of credits in various fields hinh anh 2Source: VNA

For the exchange rate, the State Bank flexibly operated the central exchange rate in line with domestic and foreign market developments as well as balancing the macro economy and monetary policy objectives, and taking advantages of market conditions to purchase a large amount of foreign currency to swell up foreign exchange reserves.

Pham Thanh Ha, Director of the SBV’s Monetary Policy Department, reported that as of June 6, the central bank’s USD/VND daily reference exchange rate rose by 1.03 percent against the end of 2018 to 23,060 VND per US dollar. 

The average exchange rate on the interbank market was about 23,408 VND per US dollar, up 0.90 percent. 

The dollar was listed at 23,355 VND for buying and 23,475 VND for selling at the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), up 0.86 percent and 0.99 percent against the end of 2018, respectively, according to Ha.

More than 350 billion VND to support pig farming

At the press conference, Director of the SBV Credit Department Nguyen Quoc Hung said since February, the State Bank has requested its branches in localities and credit institutions to monitor the provision of loans for pig breeders who are facing damages caused by the African swine fever (ASF) virus; reschedule debt payment deadlines; reduce or exempt loan interests; and consult provincial and municipal People’s Committees with measures to deal with debts.

Tightening control of credits in various fields hinh anh 3Illustrative image (Photo: VNA)

So far, credit institutions have provided 357 billion VND (15.3 million USD) for pig breeders in ASF-affected cities and provinces.

The State Bank also worked with the People’s Committees of Central Highland provinces to discuss tackling the difficulties of peppercorn plant growers given the massive death of plants.

In January – June, credit institutions helped more than 6,450 customers with nearly 1.9 trillion VND via restructuring debts, adjusting lending interest rates and offering new loans for resuming production and shifting to grow other crops.

Credit institutions also pushed ahead with programmes directed by the Government such as providing loans to reduce losses in agriculture, encourage clean agriculture, high-tech agriculture and social housing.

Credit in risky areas was also closely controlled in line with the direction of the State Bank, Hung said.-VNA