Resolutely reduce interest rates, especially lending interest rates

In his concluding remarks, Prime Minister Pham Minh Chinh said that, in addition to the achieved results, the banking sector's operations still have limitations and shortcomings. Interest rates, especially lending rates, are still high. Credit balance growth is low, and many enterprises still have difficulty accessing new credit. Bad debts continue to be handled but still pose many risks. Progress in handling weak credit institutions is still slow. The work of grasping and forecasting the situation is not close; the resolution of difficulties and problems of people and enterprises is sometimes slow and untimely...

According to the Prime Minister, in the coming time, the world situation is forecast to continue to develop rapidly, complicatedly, unpredictably, with heavy impacts and influences on many areas. Domestically, difficulties and challenges outweigh opportunities and advantages; the pressure on macroeconomic management and direction remains very large. In management and direction, special attention must be paid to ensuring a harmonious and reasonable balance between: interest rates and exchange rates; growth and inflation; supply and demand; monetary policy and fiscal policy; closely monitoring and grasping the internal and external situation.

Resolutely reduce interest rates, especially lending interest rates photo 1

The Prime Minister requested drastic measures to reduce interest rates, especially lending rates. Photo: VIET CHUNG

The Prime Minister stated that, in terms of policy orientation, we will continue to implement a proactive, flexible, loose, timely, and effective monetary policy; coordinate synchronously, closely, and harmoniously with a reasonable, focused, key, effective, quick, and decisive expansionary fiscal policy.

The Government and Prime Minister's proposal to shift monetary policy from "tight" (before October 2022) to "firm" (from October 2022) and continue to shift to "more flexible and loose" (from June 2023) is necessary and appropriate to meet practical requirements to remove difficulties for production and business, promote growth, create jobs and livelihoods for people.

The Prime Minister also noted that implementing a more flexible and looser monetary policy requires focus, key points and control.

Regarding the tasks in the coming time, the Prime Minister noted the implementation of proactive, flexible, appropriate, timely and effective monetary policy management solutions to remove difficulties for production and business, promote growth associated with macroeconomic stability and control inflation. It is necessary to grasp the situation to choose appropriate priorities, synchronously and flexibly use the four available tools including compulsory reserves, refinancing, interbank market and open market.

Regarding credit activities, the Prime Minister requested the State Bank to focus on managing credit growth with a reasonable structure, meeting the credit capital demand of the economy; directing credit capital to production and business, priority areas and growth drivers.

Continue to implement synchronous and drastic solutions to reduce interest rates, especially lending interest rates. Determine credit growth limits appropriate to the practical situation. Direct the review of lending conditions and criteria to make appropriate and more favorable adjustments, ensuring increased access to credit for people and businesses, especially small and medium enterprises. Accelerate the implementation of the VND40,000 billion interest rate support credit package and VND120,000 billion social housing loans.

The Prime Minister also requested the banking sector to participate in developing a healthy corporate bond market. To create conditions for well-performing enterprises to mobilize capital through bond issuance to support economic recovery, the Ministry of Finance has recently directed the Ministry of Finance to classify specifically to have appropriate measures: bonds with the ability to repay; bonds with difficulty in repaying; bonds with no ability to repay.

Along with that, the banking industry actively participates in removing difficulties and obstacles, contributing to the development of a safe, healthy and sustainable real estate market. Strictly handle acts of providing inaccurate, misleading and distorted information, causing harm to the healthy and transparent operation of financial, credit and real estate markets...

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