Prime Minister: Put 15 million billion VND of bank deposits into production and business
Báo Thanh niên•19/11/2024
With the amount of money people deposit in banks currently reaching over 15 million billion VND, the Prime Minister requested that there should be solutions so that this capital source can effectively serve production and business.
On the afternoon of August 5, Prime Minister Pham Minh Chinh worked with leaders of the State Bank and leaders of a number of ministries and branches on monetary policy management.
Prime Minister Pham Minh Chinh chaired a monetary policy meeting on the afternoon of August 5.
NORTH JAPAN
According to the State Bank's report, as of July 31, the central exchange rate was at 24,255 VND/USD, up 1.63% compared to the end of 2023, a low and stable average compared to currencies in the region and the world. Interest rates for new and old loans continued to decrease. By the end of June, the average lending interest rate was at 8.3%/year, down 0.96% compared to the end of 2023; the average deposit interest rate was at 3.59%/year, down 1.08%/year compared to the end of 2023. Credit growth of the whole system recovered from the end of March and gradually increased over the months, higher than the increase in the same period in 2023, reaching 6% by the end of the second quarter of 2024 according to the direction of the Government and the Prime Minister. At the end of July, outstanding credit was nearly VND 14.33 trillion, up 14.99% over the same period in 2023 and up 5.66% over the end of 2023. The State Bank, ministries, branches and localities coordinated to implement credit programs for sectors and fields such as the VND 120,000 billion credit program for loans to develop social housing, workers' housing, apartment renovation and reconstruction projects; credit program for forestry and fishery sectors, with a total accumulated amount of VND 34,400 billion. Emphasizing that banking activities are the lifeblood of the economy, the Prime Minister requested that there be no mistakes that could affect the macro economy and overall development, while ensuring the safety of the national banking and financial system, especially when the situation fluctuates. The Prime Minister assessed that the practical situation in recent times shows that the Government's orientation from the beginning of the year on "proactive, flexible, timely and effective monetary policy" is basically appropriate and has been seriously and effectively implemented by the State Bank in the context of many difficulties.
Deputy Governor of the State Bank Pham Thanh Ha speaks at the meeting.
NORTH JAPAN
However, there are still many pressures such as interest rates tending to increase, credit growth not meeting requirements, high demand for loans at the end of the year, increased demand for foreign currency, risks from geopolitical tensions in the world... In particular, with the amount of money that people deposit in banks currently reaching over 15 million billion VND, the Prime Minister requested that there should be solutions so that this capital source can effectively serve production and business.
Proposal to increase social housing package to 140,000 billion VND
Regarding monetary policy, the Prime Minister emphasized the need to manage credit growth at around 15%, focusing on traditional growth drivers and new growth drivers. Flexibly manage exchange rates using various tools. At the same time, manage open market operations in line with market developments. Manage flexibly, harmoniously, reasonably, and balance interest rates and exchange rates. Strengthen management and control of the gold and foreign currency markets in a fundamental and methodical manner. Promote bad debt handling, resolutely implement the project "Restructuring the system of credit institutions associated with bad debt handling in the period 2021 - 2025". Focus on effectively implementing the plan to handle weak credit institutions; restructure commercial banks under special control under the direction of competent authorities. The Prime Minister welcomed the State Bank's proposal to increase the credit package of 120,000 billion VND for preferential loans for the development of social housing and workers' housing to 140,000 billion VND with an increased loan term and reduced interest rates. At the same time, it is required to study appropriate access conditions and find ways to make this credit package work because this is a humane policy, helping people in difficulty to have a place to live. Regarding trade and investment, the Ministry of Industry and Trade, the Ministry of Planning and Investment, and the Ministry of Foreign Affairs will promote exports, striving to achieve a record import-export of about 750 - 800 billion USD and a trade surplus of over 20 billion USD. Expand payments in local currency with other countries.
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