Banking loans should be prioritized for production, start-ups

14:39 | 19/07/2017 Finance - Banking

Minister and Chairman of the Government Office Mai Tien Dung has asked the State Bank of Vietnam (SBV) to prioritise banking loans for start-ups and enterprises in production and manufacturing areas to ensure credit growth targets.

SBV Governor Le Minh Hung (L) and Minister and Chairman of the Government Office Mai Tien Dung - Credit: VGP

Dung made the request while leading a Government Working Group to work with the SBV on July 18.

Minister Dung told the SBV to focus on fulfilling the six key tasks assigned by the Government and the Prime Minister.

The first task was to ensure the annual credit growth target at 18-20% and to reduce lending interest rates by 0.5-1% per year.

The SBV was also told to resolve non-performing loans which will help to boost the healthy development of credit institutions and create conditions for lowering interest rates.

Minister Dung also urged the banking sector to quickly develop a policy to mobilise idle foreign currency from the public instead of offering a 0% interest rate for deposits in foreign currencies.

In addition, Dung said that the Prime Minister asked the SBV to better control cross-ownership among the banking system.

Head of the Government Working Group told the banking sector to pay more attention to cutting banking procedures in order to facilitate enterprises in gaining access to loans while offering more preferential interest rates to high-tech agriculture enterprises to gain access to the VND100 trillion (US$4.4 billion) credit package.

The Government Working Group also urged the banking sector to implement measures to enhance the safety of information networks and ensure safety for depositors as people are being encouraged to use banking cards instead of cash.