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Credit grows modestly at 1.96% in Jan-May
By Trang Nguyen
Saturday,  Jun 6, 2020,18:55 (GMT+7)

Credit grows modestly at 1.96% in Jan-May

By Trang Nguyen

SBV vice governor Nguyen Thi Hong speaks at the press conference - PHOTO: MT

HANOI - As of May 29, Vietnam’s credit growth was only 1.96% compared with late 2019 under impacts of the Covid-19 pandemic, the Credit Department announced at a press conference held by the State Bank of Vietnam (SBV) on June 5.

According to vice governor of the central bank Nguyen Thi Hong, capital demand from January to May was low and therefore there were not many borrowers during this hard time.

SBV will adjust the credit criteria for commercial banks based on the real situation. Hong said monetary policy criteria, including credit criteria, aim to control inflation, stabilize the macro-economy and ensure safety for the banking system.

“Credit criteria adjustment is necessary but it has to ensure credit growth and risk control happen in parallel,” she said.

SBV said from January to May, it appropriately controlled the credit scale to ensure credit quality and create favorable conditions for businesses and individuals to access credit packages.

Ha Thu Giang, vice head of the Credit Department, said as of May 25, credit institutions had reduced interest rates for over 326,000 clients, offered loans with preferable interest rates to nearly 196,400 clients and restructured debt payment terms for some 224,000 clients.

The Policy and Society Bank rescheduled debt payments for more than 150,700 clients and restructured debt payment terms for some 75,200 clients.

In March and May, SBV adjusted down policy rates by 1-1.5% per year to support commercial banks and reduced interest rate ceilings by 0.6-1% per year for key sectors.

Following the Government’s directive, credit institutions have introduced credit packages to support businesses and individuals affected by the Covid-19 pandemic, which reduced interest rates by up to 4% per year. However, they did not lower credit standards to ensure safety for the banking and financial system.

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