Prime Minister directs to strengthen credit management solutions in 2024

Prime Minister Pham Minh Chinh has just signed and issued Official Dispatch No. 122/CD-TTg to the Governor of the State Bank of Vietnam on strengthening credit management solutions in 2024.

Transaction at Vietcombank. (Photo nhandan.vn)

The dispatch stated that, in the past time, under the leadership of the Party, the support of the National Assembly, the drastic and timely direction of the Government, the Prime Minister and the close coordination of all levels, sectors and localities, the State Bank of Vietnam and the system of credit institutions have made many efforts, closely following reality, focusing on drastic, synchronous, effective and focused implementation of key tasks and solutions in the monetary and banking sector, contributing positively to the socio-economic development results of the country since the beginning of the year.

However, in the context of the world situation continuing to develop complicatedly, military conflicts persisting in some regions, the global economic recovery is slow, uneven, and unstable; natural disasters and climate change have greatly affected many countries. In the country, production and business activities of people and enterprises face many difficulties, especially heavy damage caused by storm No. 3, natural disasters, and floods in many localities, access to credit is still difficult, and bad debt of banks is increasing.

To further improve the efficiency of credit management in 2024, strengthen state management of monetary field, Banking activities aim to further promote economic growth and strive to achieve the highest possible level of all key targets of the 2024 socio-economic development plan according to the policies, Resolutions, and Conclusions of the Party, National Assembly, and Government; The Prime Minister requests:

The State Bank of Vietnam shall preside over and coordinate with relevant agencies to: continue to closely monitor developments in the international and regional situation, changes and adjustments to financial and monetary policies of major economies for analysis and timely and effective policy responses; proactively, flexibly, promptly and effectively manage monetary policy, closely and harmoniously coordinate with a reasonable, focused and key expansionary fiscal policy and other macroeconomic policies; in which, focus on implementing more drastically and effectively the tasks and solutions on interest rate management, exchange rate management, credit growth, open market management, money supply, reducing lending interest rates, etc. to provide capital to the economy at reasonable costs; Disburse and withdraw money in a rhythmic, synchronous, reasonable manner, without jerkiness and creating liquidity pressure for the banking system, in order to support people and businesses to quickly overcome the consequences of storm No. 3, restore and develop production and business, promote economic growth associated with macroeconomic stability, control inflation, ensure major balances of the economy, safety of banking operations and the system of credit institutions.

Urgently, effectively and promptly implement credit solutions in line with macroeconomic developments, inflation and meeting capital needs for the economy, removing difficulties for people and businesses, supporting production and business development, creating jobs and livelihoods for people in the spirit of harmonious interests, sharing risks, mutual love, mutual assistance, ensuring the most effective and substantial flow of credit capital into the economy, absolutely not allowing congestion, delay, wrong timing, wrong address, creating a mechanism of asking for and giving, negativity in the credit granting of the credit institution system. Implement the credit growth target for 2024 at 15%.

Continue to implement more effectively and strongly solutions within authority to reduce lending interest rates of the credit institution system, support people and businesses to have conditions to develop production and business, generate revenue, profit and repay loans to banks.

Direct credit institutions to focus credit on production and business sectors, priority sectors and economic growth drivers, digital transformation, green transformation, climate change response, circular economy, sharing economy, science, technology and innovation, etc.; strictly control credit for risky sectors, ensure safe and effective credit activities; continue to have policies to remove difficulties in accessing credit for businesses and people. Promote lending to serve production, business and consumer needs at the end of the year and the Lunar New Year 2025.

Continue to make more efforts to reduce lending interest rates through cost reduction, simplification of administrative procedures, increased application of information technology, digital transformation, etc.

Promote effective implementation and ensure publicity and transparency of preferential credit packages suitable to the characteristics of each credit institution for important sectors, contributing to promoting the growth drivers of the economy according to the Government's policy, especially credit packages for social housing, workers' housing, credit packages for forestry products, aquatic products, etc.; promote the role, enhance social responsibility and business ethics of credit institutions in sharing and supporting people and businesses when facing difficulties.

Continue to proactively review and summarize customers who are borrowing capital and are suffering losses due to the impact of storm No. 3 to promptly apply measures. support, solve difficulties for customers through measures to restructure debt repayment terms, waive and reduce interest rates, continue to provide new loans to restore production and business activities after the storm according to current regulations, and handle debts for damaged customers according to regulations.

Strengthen, enhance inspection, examination, control and close supervision of credit granting and interest rate announcement of credit institutions, promptly and strictly handle violations according to regulations; have effective solutions to promptly handle bad debts of the credit institution system.

The Prime Minister assigned Deputy Prime Minister Ho Duc Phoc to directly direct the State Bank of Vietnam and relevant agencies to perform the tasks assigned in this Official Dispatch. The Government Office shall monitor and urge according to its assigned functions, tasks and authority.

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