State Bank tackles downturn

HCM City (VNA) - The State Bank of Vietnam (SBV) will encourage commercial banks to expand credit programmes effectively by improving access and addressing problems faced by enterprises in debt repayment.

SBV Governor Nguyen Van Giau said on Feb. 20 that for its part, the central bank
would deploy its monetary policies to manage interest rates, exchange rates and gold
trading carefully so as to encourage production and export and foster macro-economic
stability.

It would also take measures to prevent speculation and illegal trading in foreign
currencies, he said.

Giau said the SBV would hold monthly meetings with its subsidiaries and credit
institutions to address credit-related problems.

It would also petition the Government to issue specific credit policies for rural
areas, including the provision of small loans.

Under these policies, the government will subsidise 50 percent of the interest rate
on loans taken by agricultural workers in 61 poorest districts to plant forests and/
or invest in production.

The Vietnam Bank for Social Policies will launch a two-year plan to raise funds and
expand lending to poor families and students.

The governor called on commercial banks to disburse capital for big State-operated
for big State-operated projects and buy State bonds to help the Government get more
money.

The SBV will also negotiate with international organisations to mobilise ODA capital
and other aid inflows, according to Giau.-Enditem