Prime Minister requests to reduce lending interest rates

The Prime Minister requested that money be released and withdrawn in a rhythmic, synchronous, and reasonable manner, without jerkiness and creating liquidity pressure for the banking system.

Prime Minister Pham Minh Chinh signed and issued Official Dispatch No. 111 to the Governor of the State Bank of Vietnam on strengthening credit management solutions in 2024.

In the telegram, production and business activities of people and enterprises faced many difficulties, especially heavy damage caused by storm No. 3, natural disasters, and floods in many localities, access to credit was still difficult, and bad debt of banks increased.

The Prime Minister requested the State Bank of Vietnam to preside over and coordinate with relevant agencies to continue closely monitoring developments in the international and regional situation, changes and adjustments to financial and monetary policies of major economies to analyze and have timely and effective policy responses.

Conduct monetary policy proactively, flexibly, promptly, effectively, closely and harmoniously coordinate with a reasonable, focused, key expansionary fiscal policy and other macroeconomic policies.

In particular, we need to 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, and reducing lending interest rates... to provide capital to the economy at reasonable costs.

Disbursing and withdrawing money in a rhythmic, synchronous, reasonable manner, without jerkiness and creating liquidity pressure for the banking system, to support people and businesses to quickly overcome the consequences of storm No. 3, restore and develop production and business.

Urgently, effectively and promptly implement credit solutions in line with macroeconomic developments, inflation and to meet capital needs for the economy, remove difficulties for people and businesses, and support production and business development.

"Absolutely do not allow congestion, delays, wrong timing, wrong address, create a mechanism of asking for and giving, and negativity in the credit granting of the credit institution system. Achieve the credit growth target of 15% in 2024", the Prime Minister requested.

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.

The Prime Minister also requested the State Bank to direct credit institutions to focus credit on production and business sectors, priority sectors and economic growth drivers.

Strictly control credit in risky areas, 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 further efforts to reduce lending interest rates through cost savings and simplification of administrative procedures.

Ensure publicity and transparency of preferential credit packages suitable to the characteristics of each credit institution for important sectors, contributing to promoting economic growth drivers according to the Government's policies, especially credit packages for social housing, workers' housing, credit packages for forestry products, fisheries, etc.

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.

According to Thuy An/VTV

Source: https://doanhnghiepvn.vn/kinh-te/thu-tuong-yeu-cau-giam-mat-bang-lai-suat-cho-vay/20241128110639721