Request regarding public disclosure of interest rates for loans in Vietnam before April 10, 2024

Request regarding public disclosure of interest rates for loans in Vietnam before April 10, 2024 (Internet image) 

Regarding this matter, LawNet would like to answer as follows: 

On April 5, 2024, the Prime Minister issued Official Telegram 32/CD-TTg on measures to manage credit growth in 2024.

Request regarding public disclosure of interest rates for loans in Vietnam before April 10, 2024

In order to continue improving the effectiveness of credit growth management in 2024 while strengthening state management in the monetary and banking sectors, it is necessary to be proactive, flexible, harmonious, timely, and effective in managing monetary policy tools, especially interest rates, exchange rates, and credit, and to prioritize promoting economic growth, maintaining macroeconomic stability, controlling inflation, and ensuring the major balances of the economy. The Prime Minister issued Official Telegram 18/CD-TTg on March 5, 2024, on credit growth management in 2024, however, credit growth until March and the first quarter of 2024 only reached about 0.9%. Thus, the Prime Minister requested the State Bank of Vietnam to lead and coordinate with relevant agencies in:

- Directing and requiring credit institutions to:

+ Publicly disclose the interest rate floor for loans and implement credit packages before April 10, 2024, in accordance with the guidance of the Prime Minister's Office in Notice 123/TB-VPCP on April 2, 2024; any organization that fails to comply will be strictly handled with by the Governor of the State Bank of Vietnam and publicly announced in accordance with the law.

+ Continue to reduce costs, simplify administrative procedures, enhance the application of information technology, digital transformation, and strive to reduce the interest rate floor for loans to contribute to promoting production and business, creating livelihoods for the people, and continuously supporting the people and businesses.

+ Promote effective implementation and ensure the transparency of preferential credit packages suitable for the characteristics of each credit institution in important sectors that contribute to promoting the growth drivers of the economy according to the government's direction; enhance the role and social responsibility, business ethics of credit institutions in understanding, sharing, and supporting the people and businesses; in the spirit of working together, enjoying together, winning together, and sustainable long-term development.

- Continuously monitoring the developments and situations of the world and domestic economies, proactively, flexibly, timely, and effectively managing monetary policies; implementing resolute and effective tasks, solutions, especially in promoting credit growth, reducing the interest rate floor for loans according to the Prime Minister's guidance in Official Telegram 18/CD-TTg on March 5, 2024, and related documents to prioritize promoting economic growth, removing difficulties for production and business, ensuring macroeconomic stability, controlling inflation, ensuring the major balances of the economy, the safe operation of banks, and the system of credit institutions.

- Urgently implementing resolute, effective, and timely solutions for credit growth suitable for macroeconomic developments, inflation, meeting the capital needs of the economy to remove difficulties for businesses, people, support production and business development, job creation, livelihoods for the people; directing credit institutions to focus credit on production and business sectors, priority sectors, and traditional economic growth drivers such as consumption, investment, exports, and strongly promote digital transformation, green transformation, cope with climate change, cyclical economy, science, technology, and innovation...; tightly controling credit for risky sectors, ensure safe and effective credit operations; continuing to have breakthrough policies for preferential credit packages to remove difficulties in accessing credit for businesses, people.

- Urgently conducting a comprehensive review, thorough analysis, and careful evaluation of the results of implementing credit limits of the credit institution system for the economy, each sector, and each sector to have effective, feasible, and timely measures to manage credit growth in 2024, absolutely not to have obstacles, delays, not at the right time, ensuring the implementation of credit growth targets set for 2024 and the safety of the credit institution system; in cases of content beyond jurisdiction, promptly reporting and proposing competent authorities according to regulations.

- Continuing to effectively implement appropriate measures to reduce the interest rate floor for loans associated with enhancing access to credit to support people and businesses in developing production and business, ensuring sufficient credit supply, serving, meeting the capital needs of the economy, and ensuring the safety of the credit institution system in accordance with the guidance of the Prime Minister in Official Telegram 18/CD-TTg on March 5, 2024.

- Directing state commercial banks to immediately research and provide a credit package for social housing buyers with a term of up to 15 years, preferential interest rates lower than normal commercial loans for businesses, investors building social housing to borrow at even more preferential rates so that low-income individuals have the opportunity and motivation to buy, rent, or rent-to-own; continuing researching, considering lowering interest rates, simplifying procedures, and facilitating borrowing of capital to support the 120 trillion dong fund in accordance with the Prime Minister's direction in Notice 123/TB-VPCP dated March 27, 2024.

- Strengthening and enhancing strict inspection, examination, control, and supervision of credit issuance by credit institutions and having effective, timely solutions to handle bad debts in the credit system.

Nguyen Ngoc Que Anh

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