The Prime Minister to direct strict monitoring of the use of credit growth limits in Vietnam

The Prime Minister to direct strict monitoring of the use of credit growth limits in Vietnam (Internet image)

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

On December 22, 2023, the Prime Minister issued Official Telegram 1403/CD-TTg, strengthening management and improving the efficiency of credit growth management to serve economic growth.

The Prime Minister to direct strict monitoring of the use of credit growth limits in Vietnam

To continue to strengthen state management and improve the effectiveness of monetary policy administration, the Prime Minister requests:

(1) State Bank of Vietnam:

- Urgently implement the assigned tasks in Official Dispatch 1224/CD-TTg in 2023 and Notice 527/TB-VPCP in 2023, focus on operating monetary policy proactively, flexibly, promptly, effectively, feasible, scientifically, in accordance with regulations, close to the situation, strictly probihit to give rise to the mechanisms of asking - giving, group benefits, negativity, corruption, etc. in credit growth, ensuring an adequate supply of healthy, focused credit capital to serve the economy and the safety of the credit institution system, do not let congestion, delay, untimely or unhealthy credit growth, serve group and backyard interests...

- Governor of the State Bank of Vietnam directs the use of prescribed tools to promote increased inspection, examination, control, and strict supervision of the use of assigned credit growth limits by credit institutions, ensuring that credit capital flows are focused on priority and important areas and growth drivers of the economy (consumption, export, and investment), serving the production and business development needs of businesses and people who have the conditions to expand production and business safely, healthily, and sustainably but lack capital.

It is strictly prohibited to grant credit not in accordance with the law, to the wrong subjects, and to grant credit to the board of directors, executive board, and related persons of credit institutions, ecosystem businesses, backyard businesses, etc. with preferential interest rates while people and businesses with legitimate and legal needs have difficulty accessing credit capital. At the same time, implement tools to control inflation and minimize or limit the increase in bad debt for weak credit institutions and those at risk of increased bad debt.

- Coordinate closely with the Ministry of Finance and relevant agencies to strictly handle cases according to regulations. Consulting, introducing customers to invest, buying corporate bonds, consulting, and selling insurance at credit institutions are not in accordance with regulations, causing property damage to customers.

(2) Request the Governor of the State Bank of Vietnam to focus on directing careful preparation and good implementation of measures to ensure credit growth in 2024, which focuses on reviewing and perfecting criteria, standards, conditions, processes, and procedures, ensuring openness, transparency, health, sustainability, and increasing access to credit for people and businesses, and strengthening inspection, inspection, supervision, ensuring credit quality, using credit capital for the right purpose and effectively, and preventing bad debts from arising.

(3) The Government Inspectorate coordinates with the State Bank of Vietnam and related agencies to urgently carry out assigned tasks in Document 9444/VPCP-V.I of 2023 on inspection of credit growth management.

(4) The Ministry of Public Security, according to its assigned functions, tasks, and authority, coordinates with relevant agencies to grasp the situation, deploy working measures, and strictly handle cases according to legal regulations; organizations and individuals violate the law related to issuing corporate bonds, credit growth, and granting credit increase limits contrary to regulations; lack of transparency, publicity, and negativity, especially "asking and giving" in granting credit limits; and negativity in brokerage and consulting on insurance sales at credit institutions.

(5) The Government Office monitors and urges, according to assigned functions, tasks, and authority; to report to the Prime Minister on issues beyond authority.

More details can be found in Official Telegram 1403/CD-TTg, dated December 22, 2023.

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