The Official Telegram on credit growth management in 2024

On 5/3/2024, the Prime Minister issued Official Telegram No. 18/CD-TTg on the credit growth management in 2024.

According to the Official Telegram, to continue to improve the efficiency of operating monetary policy tools and drastically implement solutions on interest rate and credit management to support production and business activities of people, businesses, boost economic growth, stabilize the macro economy, control inflation, ensure major balances of the economy, the Prime Minister requests as follows:

- The State Bank of Vietnam presides and coordinates with relevant agencies:

+ To urgently comprehensively review the credit granting results of the system of credit institutions for the economy, each industry and each field; the credit granting results of each credit institution and commercial bank up to the present time in order to have effective, feasible and more promptly measures to manage credit growth and interest rates in 2024 according to the authority and provisions of the law, ensuring adequate supply of credit capital to serve the economy and the safety of the credit institution system, absolutely avoiding congestion, delays, or untimely events; in case of the content beyond authority, promptly report and propose to competent authorities according to regulations; take esponsibility to the Government and Prime Minister for monetary policy management and credit growth.

+ To closely monitor developments and the world and domestic economic situation to manage monetary policy proactively, flexibly, promptly and effectively; flexibly, harmoniously and reasonably manage interest rates and exchange rates in accordance with the market situation, macroeconomic developments and monetary policy goals in accordance with the main tasks and solutions in the Resolution No. 01/NQ-CP dated January 5, 2024 of the Government to prioritize promoting economic growth and removing difficulties for production and business; effective credit growth, providing foreign currency for production and business, associated with macroeconomic stability, inflation control, ensuring major balances of the economy, safety of banking operations and system of credit institutions, ensuring the achievement of credit growth targets set in 2024.

+ To immediately carry out operating solutions to continue reducing lending interest rates associated with increasing access to credit capital to support people and businesses in developing production and business, ensuring adequate supply of credit capital and foreign currency that are healthy, focused, and serve to meet the capital needs of the economy and the safety of the credit institution system.

+ To promote and strengthen inspection, examination, control and strict supervision of credit granting by credit institutions, ensure credit capital flows, including foreign currency credit capital focusing on the following areas: Priority and important areas, growth drivers of the economy (consumption, export, investment), serving the production and business development needs of businesses, people with conditions to expand safe, healthy and sustainable business and production but lack of capital. It is strictly prohibited to grant credit that is not in accordance with the law, to the wrong subjects, or to the board of directors, executive board and related persons of credit institutions, businesses in the ecosystem, backyard businesses... with preferential interest rates while people and businesses with legitimate and legal needs have difficulty accessing credit capital and foreign currency. At the same time, implement tools to control inflation and reduce and limit the increase in bad debt for credit institutions.

- The State Bank of Vietnam directs and requires credit institutions:

+ To closely follow the directions of the Government and the State Bank of Vietnam, continue to reduce lending interest rates (cost reduction; simplify administrative procedures, increase information technology application, and digital transformation...); publicly announce the average lending interest rate to make it easier for people and businesses to access credit and choose banks to borrow capital. To beef up effective implementation of preferential credit packages suitable to the characteristics of each credit institution for important fields and growth drivers of the economy according to the Government's policies; promote the pioneering and exemplary role of effective business credit institutions and state credit institutions; strengthen social responsibility and business ethics of credit institutions in sharing and supporting people and businesses.

+ To continue to direct credit capital to production and business areas, priority areas and traditional growth drivers such as consumption, investment, export, digital transformation, climate change prevention, and green transformation, circular economy, science, technology and innovation... of the economy according to the Government's policies; continue to strictly control credit in potentially risky areas; ensure safe and effective credit operations.

+ To strengthen information and communication work, guide customers and beneficiaries in accessing policies. To focus on clear, complete, transparent and accurate communication of credit institutions' policies, products, services and foreign exchange to the public.

In addition, the Prime Minister assigned the Government Office to monitor and urge according to assigned functions, tasks and authority.