Hanoi (VNA) – The State Bank of Vietnam (SBV)’s recent decision to increase credit room by 1.5-2% for credit institutions aims to increase resources and the supply of credit to businesses and key sectors of the economy, SBV Deputy Governor Dao Minh Tu has said.

Tu said the impacts of the global downturn on Vietnam have been reduced, while positive signs have been seen in macro-economic indicators, providing favourable conditions for the increase of credit room for commercial banks and enabling them to support businesses, projects, programmes and necessary sectors of the economy.

The official said that the allocation of credit growth will be prioritised for banks with strong liquidity and high capacity to reduce interest rates.

Some banks such as the Agribank still have yet to hit the credit growth limit allocated at the beginning of the year, he said.

Therefore, this credit allocation aims to encourage commercial banks to focus on mobilising capital and reducing interest rates, creating favourable and positive conditions, both in capital sources and interest rates for businesses, projects and programmes, he explained.

The SBV Deputy Governor said that the adjustment of the credit growth by 1.5-2% means about 240 trillion VND (10.08 billion USD) is being pumped into the economy. To date, credit growth has reached 12.2%, lower than the limit of 14%. This means there is still room for commercial banks to provide more capital for businesses and the economy.

Tu said that the SBV will keep a close watch on the currency flow and drive it to prioritised sectors, including agriculture and rural development, small and medium-sized enterprises, exports, supporting industries, and social housing.

He underlined that all the policies given by the SBV aim to support economic growth in a sustainable manner and continue to complete the goal of reining in inflation and ensuring macro-economic stability./.