Taking drastic measures for inflation curbing in late 2008, urges PM

The Government chief ordered the SBV to timely refinance and rediscount credit organizations in order to raise the liquidity of the banking system, providing capital to enterprises, so as to fulfill the economic growth targets in 2008 and facilitate the stable economic development in the following years.

SBV should assist small-size credit organizations to ensure the safe and stable operation of the banking system. Meanwhile, their interest rates of capital mobilization must be tightly supervised.

At the same time, it is necessary that the SBV adjusts the foreign exchange rate with reasonable ranges in order to stabilize the foreign currency market, ease foreign currency speculation, and adequately provide importers of materials and essential commodities for production and consumption.

The PM entrusted the MPI to review and publicize within June the list of public investment projects (and their value) which should be cut in 2008.

The MoF was assigned to outline a roadmap of yearly reduction of budget overspending. It will work with the MIT, SBV, Ministry of Labor, War Invalids and Social Affairs to closely monitor investments conducted by State-owned enterprises (SOEs); design a price itinerary for essential commodities in order to proactively stabilize the market; and assist the poor households.

The MoF is also in charge of stabilizing and developing the stock market, speeding up the equitization of SOEs.

The PM assigned MIT, MoF, and SBV to jointly make a list of limited imports; boost up export and apply import tax policies in order to ensure the excess of import over export around 30%.

By Hương Giang