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Source: Socialist Republic of Vietnam

Speaking at a conference to review the State Bank of Vietnam (SBV)’s 2020 performance and deploy its tasks for 2021 in Hanoi on December 26, the Government leader proposed that banks should not only offer loans but also provide practical support to help enterprises come up with effective and sustainable production solutions, thus bringing benefits for both sides.

He highly lauded the SBV’s adjustments in its policy interest rates since the beginning of the year, down by about 1.5-2% per annum – the largest reduction in the region.

Highlighting the risk of increased bad debt due to the impact of the COVID-19 pandemic, he told the SBV and credit institutions to apply measures to tackle bad debts and restrict the emergence of new ones, in addition to expanding credit to support economy recovery.

The SBV should focus on perfecting monetary, credit and banking institutions to meet the development needs in the new period, PM Phuc said, asking the agency to continue flexibly and proactively regulating monetary policy tools, while closely coordinating fiscal policies and other policies to control inflation, ensure macroeconomic stability and promote socio-economic development.

He requested the SBV accelerate the restructuring of credit institutions and the handling of weak banks’ bad debt, hailing this as a key task in the coming time.

On the same day, PM Phuc attended a conference held by the Ministry of Construction to review its task implementation in the period of 2016-2020 and work out orientations, goals and solutions for 2021 and the next five years (2021-2025).

MIL OSI Asia Pacific News