About 2 quadrillion VND will be "pumped" into the economy in 2024

State Bank leaders said that in 2024, with a credit growth target of 15%, an estimated VND2 million billion will be injected into the economy .

Credit growth target in 2024 is about 15%

Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said that in the 2024 credit orientation, the SBV sets a credit growth target of about 15%, with appropriate adjustments based on developments and actual situations.

By the end of 2023, credit growth reached 13.5%, an estimated VND1.3 trillion had been pumped into the economy. "In 2024, with a credit growth target of 15%, it is estimated to be about VND2 trillion," said Mr. Dao Minh Tu.

The State Bank's leaders affirmed to create favorable conditions for credit institutions to provide capital to meet economic growth needs and promote aggregate demand.

Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu speaks at the SBV's press conference on January 3, 2024. (Photo: VGP)

Regarding the basis for calculating the index, the Deputy Governor of the State Bank said that the maximum credit balance until December 31, 2024 is equal to the credit balance on December 31, 2023 plus the 2022 rating score multiplied by 3.5%, multiplied by the credit balance on December 31, 2023 minus the credit balance exceeding the credit growth target announced by the State Bank in 2023; minus the credit balance sales made in 2024 and not yet collected at the time of calculating the credit balance.

In addition, credit institutions shall control credit growth not to exceed the credit balance level stated in Section 1 throughout 2024. 100% foreign-owned banks and joint venture banks shall control credit growth until the end of 2024 not to exceed the credit balance level.

"Bad debt on the balance sheet is increasing. Debt at risk of becoming bad debt is also high. These factors pose challenges for 2024," the SBV leader shared.

The Deputy Governor said that the State Bank will actively and flexibly manage credit, in line with macroeconomic developments and inflation, meeting capital needs for the economy. At the same time, it will continue to direct credit institutions to direct credit to production and business sectors, priority sectors and growth drivers; and strictly control credit to potentially risky sectors.

Interest rate level decreased

Deputy Governor Dao Minh Tu informed that in 2023, the State Bank of Vietnam (SBV) continuously adjusted the operating interest rates down 4 times, with a reduction of 0.5-2.0%/year in the context of world interest rates continuing to increase and anchor at high levels, creating conditions to reduce the market lending interest rate level. At the same time, directing credit institutions to reduce costs and synchronously apply measures to reduce lending interest rates.

"Up to now, deposit and new lending interest rates of commercial banks have decreased by about more than 2.0%/year compared to the end of 2022," Mr. Dao Minh Tu stated.

In particular, the State Bank focuses on perfecting the legal framework for lending, simplifying procedures, reducing loan applications, promoting connections between banks and businesses nationwide; increasing special credit programs and products, incentives..., creating more favorable conditions for people and businesses to access bank credit.

Mr. Pham Chi Quang - Director of the Monetary Policy Department, State Bank said that the market interest rate is the lowest in the past 10 years. The overnight interest rate is 0.2 - 0.5%/year.

"The average deposit interest rate is 3.9%, while the lending rate is 6.7%, down over 2.5% compared to the end of 2022. New loans are much lower, far different from before the Covid-19 pandemic," said Mr. Pham Chi Quang.

According to vov.vn

Source: https://baovinhphuc.com.vn/tin-tuc/Id/104885/Khoang-2-trieu-ty-dong-se-duoc-