VINACHEM

Prime Minister Nguyen Tan Dung has asked the State Bank of Vietnam (SBV) to continue implementing flexible monetary policies in order to fulfil its set targets.

While working with the SBV leaders in Hanoi on April 20, the Government leader suggested that the SBV continue implementing negotiable interest rates and strive to reduce the mobilising interest rate to about 10 percent and the lending interest rate to 12-13 percent per year, helping encourage exports and reduce the trade deficit.

State-owned commercial banks must play a key role in capital mobilisation and lending, he added.

The PM noted that the SBV should continue supervising credit organisations in providing loans with negotiable interest rates for effective projects as well as keeping a close watch on commercial banks’ foreign currency lending for materials imports.

In addition, the state bank needs to take more initiative in providing official information, especially in finance, monetary policies and prices, to keep the public well informed, thus assisting the Government in its role in steering socio-economic development.

At the working session, PM Dung also praised the SBV’s efforts in implementing the government’s resolution on measures to ensure macroeconomic stability, prevent high inflation and maintain an economic growth rate of 6.5 percent in 2010.

In the first quarter of this year, Vietnam attained an economic growth rate of 5.8 percent while ensuring social welfare. However, inflation was high and the trade deficit increased 23 percent while the foreign currency payment balance decreased./.

(Source: vietnamplus)