On the afternoon of January 5, the Government Office held a regular Government press conference to inform about the socio-economic situation in December 2023.
At the press conference, the reporter asked whether the State Bank of Vietnam (SBV) can forecast any more favorable conditions for the credit market for businesses in 2024?
Answering the above question, Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that the State Bank of Vietnam has credit growth figures for 2023 of 13.71%, the absolute volume that can be added to the economy is about 1.5 million billion in 2023.
The State Bank of Vietnam expects credit growth in 2024 to be around 15%. Based on the current amount of money and outstanding debt of around VND13.56 trillion, nearly VND2 trillion will be increased by 2024. The 15% growth figure will be within the current calculation conditions.
"If by mid-year and late 2024, macroeconomic conditions are stable, allowing for good control of inflation, ensuring counterpart capital flows, necessary subjects as well as the safety of the credit institution system, the State Bank will assign more to commercial banks to increase credit growth," said Mr. Tu.
The Deputy Governor of the State Bank of Vietnam said that in 2024, there are many signs of economic recovery based on this year's results, and the economy's investment demand will certainly increase.
Currently, interest rates have decreased, much lower than before the COVID-19 pandemic. Some economic experts even assess that over the past 20 or 10 years, lending interest rates have been very low, which is one of the basic factors for strong credit growth.
This year in particular, the State Bank has been proactive with new mechanisms for credit management. It has assigned a credit limit of 15% to all credit institutions before January 1, 2024, and assigned credit institutions to strive to achieve the target.
Notably, according to the Deputy Governor of the State Bank, if any bank or credit institution achieves the 15% target and is still able to provide additional capital to the economy, ensuring quality as well as system safety, ensuring macroeconomic conditions allow, the State Bank will continue to allocate more, hoping that credit in 2024 will be better than in 2023.
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