State Bank will not adjust goals of credit growth

4/11/2015| 15:51

To look for the solutions for credit growth from now to the end of the year, the reporter has a talk with Mr. Nguyen Tien Dong about this issue.

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To look for the solutions for credit growth from now to the end of the year, the reporter has a talk with Mr. Nguyen Tien Dong about this issue.

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- Please, would you talk about the shift in credit structure at this point of time?

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- Mr. Nguyen Tien Dong: As of October 31, 2014, credit in the whole system of the credit institutions for the economy increased by 8.63% over that in 2013.

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In recent time, the State Bank of Vietnam has issued a number of credit policies to support five priority areas such as agriculture, export, small and medium-sized enterprises, enterprises applying high technology and supporting industry.

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State Bank will not adjust goals of credit growth

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On the other hand, the State Bank has also given direction to the credit institutions to balance their capital source so as to meet in time the requirements of these five areas. It has also step by step removed the barriers to bring the flow of credit into the real estate market in a move to remove the loaning barrier for this area. Thanks to it, credit structure continues to be moved in the positive direction, focusing on the priority areas according to the Government’s policy.

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In terms of the current credit structure, as compared to 2013, as of late September, credit balance in service of agricultural development occupied 19% of the economy’s outstanding debt, a 7% increase; outstanding loan for small and medium-sized enterprises to conduct export occupied 29% of the economy’s outstanding debt, a 5% increase; the outstanding debt for the supporting industry sector increased by 7% and the outstanding debt for enterprises applying high technology increased by 15.4%.

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- What do you think if the credit growth could obtain the set goals by the end of the year? That the banks try to reach the credit growth will increase bad debts or not?
\n- Mr. Nguyen Tien Dong: The State Bank has targeted for the credit growth of 12% to 14% this year. By the end of October credit growth increased by 8.63% over that in 2013. The credit growth rate in the past ten months is yet to be high enough due to the difficulties being met by the enterprises in their production and business, to the decrease in the aggregate demand and the low absorption of capital of the economy.

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With the guidance and implementation of the set solution of the banking sector as well as the law of credit that it usually increases shaprly in the year-end months, the State Bank of Vietnam will not adjust the gola of credit growth of 12% to 14% in 2014.

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On the boost of credit growth, the State Bank has guided the credit institutions to expand credit in couple with the control in order to guarantee the safety of loans and the treatment of bad debts.
\n- To obtain the set credit growth rate this year, what is the solution? Is the growth rate true to the fact or not?

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- Mr. Nguyen Tien Dong: First of all, it is necessary to affirm that the requirement of loaning of enterprises usually increases by the end of the year to meet the demand of the market, particularly during the Lunar New Year period. The enterprises themselves and the economic sectors have also intensified their activities to complete their annual business goals. That credit has also increased sharply to meet the demand is quite normal.

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The State Bank will continue to carry out the credit policy in the direction of expanding credit along with efficiency, enhance control over credit quality and actively handle bad debts. The biggest goal is to stabilize macro economy, reign in inflation, settle bad debts so as to create stable environment for enterprises to carry on their business activities.

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We will also continue to carry out synchronously all the solutions to remove difficulties for enterprises such as to actively settle bad debts and deploy the solutions to guard against the increasing bad debts according to Circular 09 of the State Bank; maintain the interest rate in conformity with enterprises so that enterprises can have conditions to reduce the costs, raise competitiveness and consumption of goods.

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We will continue to coordinate with the Party Committees at different levels and local administration in provinces and cities to deploy the Linkage Program between the Bank and Enterprises through dialogue so as to grasp the demand and aspirations, thus helping removing difficulties for enterprises. On the other hand, we will boost the implementation of the trial loaning program in service of agricultural development according to Resolution 14/NQ-CP on March 05, 2014 of the Government in order to support and encourage the people and enterprises to apply high technology in the linkage in agricultural production.

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However, to achieve these goals, it is not enough to have only the guidance for implementation of the banking sector. It is necessary to have the attention being paid by the Party, the National Assembly and the Government in improving the production and business environment of the economic sectors, especially the resolute settlement of ministries, sectors and localities in order to creat conditions to remove difficulties for production and business, raise competitiveness for enterprises so that the demand for capital of enterprises can be boosted./.

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