Official Telegram 32/CD-TTg 2024 solutions to manage credit growth in 2024

OFFICIAL TELEGRAM
On solutions to manage credit growth in 2024

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THE PRIME MINISTER notifies:

- The Governor of the State Bank of Vietnam.

In order to continue to improve the efficiency of credit growth management in 2024, while strengthening state management of the monetary and banking sectors; proactively, flexibly, harmoniously, promptly and effectively manage monetary policy tools, especially interest rates, exchange rates, and credit to prioritize promoting economic growth, maintaining macroeconomic stability, controlling inflation, and ensuring major balances of the economy.  The Prime Minister issued Official Dispatch No. 18/CD-TTg dated March 5, 2024, on managing credit growth in 2024, however, credit growth by March and the first quarter of 2024 has only reached about 0.9%. Therefore, the Prime Minister requests:

1. The State Bank of Vietnam to assume the prime responsibility for, and coordinate with relevant agencies in:

a) Continuing to closely monitor international and domestic economic developments and situations, operating monetary policy in a proactive, flexible, promptly and effective manner. Drastically and effectively implementing tasks and solutions, especially promoting credit growth and reducing lending interest rates according to the Prime Minister's direction in Official Dispatch No. 18/CD-TTg dated March 5, 2024, and related documents to prioritize promoting economic growth, removing difficulties for production and business associated with macroeconomic stability, controlling inflation, ensuring major balances of the economy, safety of banking operations and the system of credit institutions.

b) Urgently, effectively and promptly implementing credit growth solutions in accordance with macroeconomic developments, inflation, meeting the capital needs of the economy in order to remove difficulties for enterprises and people, supporting production and business development, creating jobs and livelihoods for people. Directing credit institutions to direct credit to production and business areas, prioritized areas and traditional economic growth drivers such as consumption, investment, export and strongly promoting digital transformation, green transformation, response to climate change, circular economy, science, technology and innovation, etc. Strictly controlling credit for risky areas, ensuring safe and effective credit operations; continuing to have breakthrough policies with preferential credit packages to help remove difficulties in accessing credit for enterprises and people.

c) Urgently and comprehensively reviewing, analyzing and thoroughly evaluating the results of implementing credit limits of the system of credit institutions for the economy, each industry and each field to have solutions to manage credit growth limits in 2024 (within the ambit of competence and law provisions) more effectively, feasible and promptly, absolutely, without congestion, delays or untimely events, ensuring the implementation of credit growth targets set for 2024 and the safety of the credit institution system. Any matters beyond the competence should be promptly reported and proposed to competent authorities according to regulations.

d) Continuing to effectively implement appropriate solutions to reduce lending interest rates while increasing access to credit capital to support people and enterprises in developing production and business, ensuring enough credit capital, serving and meeting the capital needs of the economy and safety of the credit institution system as directed by the Prime Minister in Official Dispatch No. 18/CD-TTg dated March 5, 2024.

dd) Directing and requesting credit institutions to:

- Publicize lending interest rates and implementation of credit packages before April 10, 2024, as directed by the Permanent Government in Notice No. 134/TB-VPCP dated April 2, 2024. Any organization that fails to comply will be strictly handled by the Governor of the State Bank of Vietnam according to its authority and shall be publicized in accordance with laws.

- Continue to reduce costs, simplify administrative procedures, increase the application of information technology, digital transformation, etc., strive to reduce lending interest rates to contribute to promoting production and business, creating livelihoods for people and constantly supporting people and enterprises.

- Promote effective implementation and ensure publicity and transparency of preferential credit packages suitable to the characteristics of each credit institution for important fields that contribute to promoting the growth drivers of the economy according to the Government's policies. Promote the role and enhance social responsibility and business ethics of credit institutions in understanding, sharing and supporting people and enterprises; in the spirit of working together, enjoying together, winning together, and developing together in a sustainable and long-term manner.

e) Directing state-owned commercial banks to immediately research the construction and provision of credit packages for social housing buyers with a term of up to 15 years, preferential interest rates lower than normal commercial loans and lending to enterprises and social housing investors at more preferential interest rates so that low-income subjects can buy houses or have advantages in renting or lease-purchasing houses. Continuing to research and consider lowering interest rates, simplifying procedures, and creating favorable conditions for the borrowing of VND 120,000 billion in support capital in accordance with the actual situation as directed by the Prime Minister in Notice No. 123/TB-VPCP dated March 27, 2024.

g) Promoting and strengthening inspection, examination, control and strict supervision of credit granting by credit institutions and taking effective solutions to promptly handle non-performing debts of the credit institution system .

2. Deputy Prime Minister Le Minh Khai shall focus on directing the State Bank of Vietnam and concerned agencies to drastically, promptly and effectively implement the proposed tasks and solutions.

3. The Government Office shall carry out the monitoring and urging according to the assigned functions, tasks and competence./.