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PM urges SBV to ease lending requirements

The Saigon Times

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HCMC – The prime minister has urged the State Bank of Vietnam (SBV), the nation’s central bank, to ease lending requirements and procedures so that businesses can gain easier access to bank loans.

According to an official dispatch released by the prime minister, in the year to October 11, credit had grown by 6.29%, way below the 11.12% achieved during the same period last year. The full-year target for credit growth in the banking system is 14% to 15%.

Seeing the difficulties faced by businesses in obtaining loans from banks and the sluggish credit growth, the prime minister has told the central bank to find ways to lower interest rates, especially simplifying lending requirements and processes.

The PM also emphasized the need to assess the effectiveness of two major preferential credit packages: the VND12-trillion credit package for social housing projects and the VND15-trillion allocation for the forestry and fishery sector.

Ministry of Construction data showed that after six months of introducing the one-million-social-home program, only VND83 billion out of VND1,095 billion in signed loan agreements has been disbursed, representing just 0.07%.

In response, the SBV is expected to introduce tailored credit packages to support commercial banks in assisting residents and businesses in overcoming challenges.

Credit support should be given to priority sectors, particularly those contributing to economic growth, such as investment, consumption and export. Meanwhile, the SBV must exercise strict credit controls in high-risk areas and offer incentives to projects and businesses that stimulate economic growth.

Furthermore, the SBV is instructed to adopt proactive monetary policy aligned with market developments, ensuring economic stability while effectively managing monetary tools, including foreign exchange rates, interest rates, and money supply.

The Ministry of Finance has been tasked with implementing additional measures to exempt, reduce, or defer taxes, fees, charges, and land rents, with the aim of providing further support to businesses and households.

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