Central bank targets credit growth of 12 percent in 2021

08/01/2021 12:01

The State Bank of Vietnam (SBV) targets a credit growth rate of 12 percent in 2021, equivalent to the growth of 12.13 percent last year, according to SBV Deputy Governor Dao Minh Tu.

 However, the goal is not a fixed figure, as the central bank may adjust it if necessary, Tu said at a press conference in Ho Chi Minh City on January 7.

He said that in case the COVID-19 pandemic is totally controlled, and the economy needs fast recovery, leading to an increased credit demand, the SBV will expand credit to support businesses and economic recovery.
Vice versa, if there is signs that the economy needs tighter control to curb inflation, the credit growth will be slashed, he said.
Tu added that the support for businesses during the post-pandemic period is defined as one of the major tasks of the banking sector in 2021.
The bank is submitting a proposal to the Prime Minister on the adjustments of regulations on foreign credit institutions and bank branches’ debt restructuring, interest and fee reduction and exemption and debt classification maintenance to support customers affected by COVID-19.
In 2020, the SBV exerted numerous efforts to maintain a suitable credit growth rate, while credit for risky areas was tightly controlled. Credit institutions also launched many programmes to offer soft loans to customers.
As of December 31, 2020, credit outstanding loan of the economy reached nearly 9.2 quadrillion VND, up about 12.13 percent year on year. The rise was 13.65 percent in 2019./.
Source: VNA
 



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