VIETNAM - PM stresses flexible monetary policy

by lexie Sat Dec 17, 2011 2:44 pm

December 17, 2011

PM stresses flexible monetary policy

Prime Minister Nguyen Tan Dung has asked the banking sector to pursue a cautious and flexible monetary policy to keep inflation under control while ensuring capital for production to meet the country’s economic development targets.

Dung made the request at the State Bank of Vietnam (SBV)’s conference on banking tasks for 2012 in Hanoi on December 17.

He took the occasion to commend the banking sector on its efforts and important contributions to the national socio-economic development in 2011.

Despite difficulties and challenges in 2011, the country has been able to control inflation by the year-end, maintain macro-economic stability and production and ensure social welfare, he said.

However, the PM pointed out shortcomings and weaknesses in carrying out the monetary policy, liquidity problems at a number of credits institutions and increasing bad debt ratio at some banks.

He instructed the central bank to complete the commercial banking system restructuring scheme in the 2011-2015 period so as to build a competitive and strong commercial banking system.

He also asked the SBV to seek solutions to help businesses in accessing bank loans more easily.

In 2012, the SBV aims to keep the credit growth at 15-17 percent. It will also take measures to control exchange rate, foreign currency market and monitor the banking sector.

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