Encouragement for credit institutions in Vietnam to reduce loan interest rates by 1 - 2%

Encouragement for credit institutions in Vietnam to reduce loan interest rates by 1 - 2%​ (Image from the Internet)

On June 5, 2024, the Government of Vietnam issued Resolution 82/NQ-CP during the Government of Vietnam's regular meeting in May 2024.

Encouragement for credit institutions in Vietnam to reduce loan interest rates by 1 - 2%

The Government of Vietnam requires the State Bank of Vietnam to lead and cooperate with relevant agencies and localities to focus on the following tasks:

- Closely monitor global and domestic economic trends to implement proactive, flexible, prompt, and effective monetary policy solutions, harmonizing them comprehensively with fiscal policy and other macroeconomic policies to resolve difficulties in production, business, and promoting growth while maintaining macroeconomic stability, controlling inflation, and ensuring key economic balances.

Flexibly manage exchange rates to stabilize the foreign exchange market; proactively develop scenarios and policy responses promptly and effectively to fluctuations in the domestic and international foreign exchange markets.

- Manage credit growth in line with macroeconomic developments and inflation, meet capital needs for the economy, support and promote growth, and ensure the safety of banking operations and the credit institution system.

Direct commercial banks to effectively implement solutions to increase credit access for citizens and businesses, focusing credit on production, business, priority sectors, and growth drivers, striving for overall credit growth in 2024 to reach about 15%;

Direct and encourage credit institutions to cut costs, reduce administrative procedures, and accelerate digital transformation to aim at reducing loan interest rates by 1-2%; continue to monitor and direct credit institutions to publish loan interest rates, and strictly handle non-compliant credit institutions.

- Lead and cooperate with the Ministry of Construction to thoroughly and comprehensively review and evaluate the reasons for slow disbursement of the 120 trillion VND credit package for social housing; urgently provide practical, feasible, and effective solutions to address obstacles and expedite disbursement, focusing on issues related to borrowers, interest rates, lending procedures, and the legal completion of projects by investors with local authorities...

Effectively implement the credit support package for enterprises in wood processing and aquatic product processing, emphasizing the role of state commercial banks.

- Continue to firmly and effectively carry out immediate and long-term tasks and solutions to manage the gold market as directed by the Government of Vietnam, the Prime Minister, and Government leaders in various Resolutions, Official Telegrams, Directives, and related documents, promptly addressing the high disparity between domestic and international gold prices to ensure a stable, effective, healthy, public, and transparent gold market in accordance with the law, preventing the goldization of the economy and its impact on macroeconomic stability.

Urgently amend and supplement Circular 02/2023/TT-NHNN as authorized to extend the restructuring of repayment terms and maintain debt classifications until December 31, 2024.

Promptly complete the mandatory transfer plan for specially controlled banks, the handling plan for Saigon Commercial Bank (SCB), and submit these to the appropriate authority for review and decision. Quickly implement measures to handle bad debts according to regulations, limiting the generation of new bad debts.

More details can be found in Resolution 82/NQ-CP dated June 5, 2024.

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