SBV adopts action program against economic recession
08:05 | 21/02/2009
VGP – The Governor of the State Bank of Việt Nam (SBV) just signed the Bank’s action program on controlling inflation, stabilizing macro-economy, preventing economic downturn, maintaining economic growth, guaranteeing social security and banking safety.

Flexible monetary policies are one of the banking sector’s measures to ensure its safety – Illustration photo

Under the program, the Governor requires the SBV’s subsidiaries to continue expanding their credits in line with legal regulations, applying proper interest rates, and clearing all difficulties in debt payment and credit accessibility.

Loan guarantees for SMEs; half-cut interest rate for poor districts

SBV pledges to coordinate with the Ministry of Finance to issues and realize regulations on credit guarantees for small and medium enterprises (SMEs).

It also quickly works with competent agencies in checking and revising regulations on credit activities in the agricultural and rural areas, especially those on lending, loan guarantees, reliable transaction registration, guaranteed properties, price insurance and consumption of agro-produce.

The SBV’s credit organizations are urged to prioritize expanding credits and applying proper interest rates in conformity with client policies. They must also restructure debt payment and offer new loans to enterprises and producers in agricultural sector and rural areas.

For 61 poorest districts, commercial banks will introduce credit mechanism under which the State budget pays for a half of interest rate of loans for afforestration, agricultural activities, building facilities to process, preserve and consume agro-produce, and helping poor households engage in husbandry, aquaculture and other handicrafts.

Capital balance to ensure disbursement of key projects

Commercial banks are also asked to balance their capital sources to facilitate the disbursement of essential and key projects. They can purchase governmental bonds to raise funds for stimulus projects.

The SBV will speed up negotiations with international financial institutions for ODA and other resources.

In 2009, the SBV plans to apply exchange rate and interest rate policies in a flexible and sound way and in lien with market situations in order to guarantee liquidity and safety of the entire banking system.

The Bank will also join hand with the Ministry of Industry and Trade to strictly monitor the balance of trade and establish a warning system to alert enterprises to their foreign debts.

By Hoàng Phương

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