Governor Nguyen Thi Hong delivers her opening speech
In her speech, SBV Governor Nguyen Thi Hong emphasized that credit is a field receiving a lot of the SBV's attention in the operational directions, and a critical pillar that requires annual adjustments to match with the practical situations as well as Vietnam’s unique economic features.
Therefore, right from the beginning of 2021, the SBV has already issued Directive No.01/CT-NHNN dated January 7, 2021 on the key tasks of the banking sector in 2021. In this Directive, the SBV had requested for reasonable growths in parallel with improvement of the credit quality linked with production and business operations; control of credit for potentially risky areas; and further removal of difficulties for people and enterprises. According to the SBV Governor, regulating the credit growth, providing capital to the economy must not result in inflation, and has to ensure the principle of credit extension going in parallel with credit safety and efficiency.
Firstly, the SBV had issued Directive No. 01/CT-NHNN dated January 7, 2021 on the key tasks of the banking sector in 2021. Accordingly, credit growth in 2021 is expected to reach around 12%, and may be adjusted in accordance with the actual situation.
Secondly, the SBV had directed the credit institutions to continue implementing various measures to remove difficulties for COVID-affected people and enterprises, such as restructuring loan maturities, waiving and reduction of bank fees and interest rates, remaining debt categories, etc
Thirdly, the SBV is continuing to implement several solutions to facilitate people's and enterprises' access to bank loans; promptly handling with any emerging difficulties and constraints.
Fourthly, the SBV had facilitated and supported Vietnam Bank for Social Policies (VBSP) in order to implement successfully the priority credit programs and policies as directed by the Government and the Prime Minister.
Fifthly, the SBV is continuing to coordinate with the relevant ministries and agencies in formulating and effectively implementing the National Target Programs (NTPs), contributing to the objectives of the NTP on Sustainable Poverty Reduction, the NTP on New Rural Development, and the NTP on Socio-economic Development for the Ethnic Minorities and the Mountainous Areas between 2021-2025.
By March 31, 2021, the credit outstanding in the economy had reached over VND 9,460 trillion, up by 2.93% as compared to that of end of 2020. The credit institutions had rescheduled debt maturities for about 263,000 borrowers with the loan outstanding of nearly VND 353 trillion; waived and reduced the interest for over 660,000 borrowers with the loan outstanding of over VND 1,270 trillion; provided new loans with the interest rates lower than the common pre-COVID rates with the accumulated amount since January 23, 2020 of over VND 3,000 trillion for over 452,000 borrowers.
In order to contribute to the GDP growth rate target of 6% in 2021 as tasked by the National Assembly, and the Government’s targeted rate of 6.5%, in the spirit of closely following the directions of the National Assembly, the Government and the Prime Minister, the key tasks of the banking sector in 2021 as set out in Directive 01/CT-NHNN dated January 7, 2021, the SBV would continue to monitor the macro-economic situation, the disease developments in the domestic and international markets in order to regulate the credit suitably toward extending credit, focusing on providing loans to the priority fields such as production and business operations; transforming the credit structure to be in line with the economic transition, contributing to accelerating the sustainable economic growth and general development. In addition, the SBV would control strictly credit for potentially risky areas as real estate, transport BOT, BT projects, securities. The SBV would also enhance the risk management of consumer credit in order provide the credit institutions with prompt instructions and to ensure safe operations of the banking sector.
Also at the Conference, Mr. Nguyen Van Du, Acting Chief Inspector of the Banking Supervision Agency, presented about the main contents of Circular No. 03/2021/TT-NHNN dated April 2, 2021 amending and supplementing a number of Articles of Circular No. 01/2020/TT-NHNN dated March 13, 2020 of the SBV Governor requesting the credit institutions and the foreign bank branches to restructure loan maturities, waive and reduce banking fees and interest rates, remain the debt categories to assist COVID-affected customers.