Inflation control becomes top priority in second half of 2020

SGGP

Inflation control target will be the top priority in monetary management policy from now until the end of 2020, announced Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong at a press conference in Hanoi yesterday.


Inflation control becomes top priority in second half of 2020 ảnh 1 Deputy Governor of the State Bank of Vietnam Nguyen Thi Hong (Photo: VGP)
Of these, the focus will be on interest rate and exchange rate management, market movements, credit scale control for quality improvement and Covid-19 developments to meet the economy’s capital demand in a timely manner.

In addition, SBV will continue asking credit institutions to implement solutions to solve difficulties for customers affected by Covid-19 such as debt restructuring and interest reduction or exemption.

According to SBV, under impacts of the Covid-19 pandemic, credit demand posted low growth in the first six months of 2020. As of May 29, it reached only 1.96 percent compared to the end of 2019, much lower than 5.74 percent and 6.16 percent during the same period in 2019 and 2018 respectively.

Currently, credit institutions are positively implementing programs to support residents and businesses under the impacts of the pandemic with interest rate as low as 3-4 percent a year. By May 25, the banking system had restructured debts for nearly 224,000 customers with the total outstanding loans of VND152 trillion (US$6.53 billion), applied interest exemption and reduction to over 326,000 customers.

With the above results, SBV believed that the monetary management policy has positively worked to assist the economy’s recovery from Covid-19, contribute to macroeconomic stabilization and inflation control from now until the end of the year.

By Luu Thuy – Translated by Phuong Ho

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