There is going to be help from the state bank in 2022 and 2023 for businesses, cooperatives, and people who own businesses to keep the interest rate at two percent a year

DNHN - This week, the State Bank of Vietnam (SBV) made a decision called Decision No. 422/QD-NHNN. It says that the banking sector's Action Plan to follow up on the government's January 30, 2022, resolution is now official.

Since the Plan is for 2022 - 2023, it lists specific tasks and solutions for managing the country's monetary policy and managing credit and the activities of banks and credit unions. 

To keep the macroeconomic system stable, control inflation, and help the process of socioeconomic recovery and development, the SBV uses monetary policy tools at the same time and in different ways. 

According to this, the SBV runs open market operations proactively and flexibly, coordinating with other monetary policy tools to help the credit system, stabilize the money market, and stabilize the money market- ready to provide the right amount of money for the process of socio-economic recovery and development. 

In addition, the SBV runs the compulsory reserve tool in coordination with other monetary policy tools and with market movements and monetary policy goals in mind.  

This is how it works: The government and prime minister have approved programs for refinancing credit institutions. 

This helps keep money flowing, helps credit institutions get better and deal with bad debts, and supports the process of restructuring credit institutions. Interest rates should be set to align with macro balance, inflation, and monetary policy goals, and they should be coordinated with other monetary policy tools. Credit institutions should keep cutting operating costs. 

Trying to cut interest rates on loans by about 0.5 per cent to 1 per cent in 2022 and 2023, especially for important sectors.

As a result, the exchange rate management is flexible and appropriate to keep the foreign currency market stable, which helps keep inflation in check and stabilizes the macro-economy, too.

In addition to managing monetary policy, the State Bank focuses on credit management to meet capital needs quickly, control credit in areas that could be a risk, and help customers who have been affected by the COVID-19 virus. 

For the two years 2022-2023, the State Bank of Vietnam is trying to keep interest rates at 2% a year through the system of commercial banks that lend money to businesses and cooperatives, as well as people who own their businesses. 

The SBV will work closely with the Ministry of Finance and the Ministry of Planning and Investment to send a Decree to the government that explains how the state budget will help businesses, cooperatives, and business households pay their loans at a lower rate. 

Propose a Circular that tells commercial banks how to support businesses and cooperatives with interest rate policies, based on the government's Decree on how to support businesses and cooperatives with interest rate support from the state budget for businesses and businesses. 

Besides these practical policies, the State Bank is still monitoring and ensuring that credit institutions are meeting the maximum ratio of short-term funds used for medium and long-term loans as set out in the roadmap. 

It says this in the State Bank's Circular No. 08/2020/TT-NHNN, which was dated August 14, 2020: Payment service fees through the interbank electronic payment system of the State Bank will not be charged or reduced.

 TH