A customer counts money at a local bank. The central bank has instructed lenders to reduce interest rates to help businesses and support economic growth. — Photo dantri.com.vn

HA NOI (Biz Hub) ― The State Bank of Viet Nam (SBV) has recently instructed credit institutions to lower their interest rates to help struggling companies access loans on easier terms.

The central bank noted that an overall lending growth rate of 12-14 per cent and an expansion of 16-18 per cent in the money supply are likely to encourage production and business activities, support economic growth and limit inflation this year.

According to Government portal chinhphu.vn, the SBV has urged institutions to cut costs and ensure financial stability. In addition, the central bank plans to intensify its supervision of the money markets for maintaining the stability of the banking system.

The central bank plans to implement measures to facilitate the borrowing of money by co-operatives and households, while ensuring flexible policies to support priority lending sectors, which include agriculture and rural areas, support industries, small- and medium-sized enterprises, and exports.

It will maintain "reasonable" policy rates, including refinancing rates, to assist homebuyers and curb bad debts in the property market. Debt trading through the Viet Nam Asset Management Company is also expected to be increased.

In addition, the SBV will tightly control the foreign exchange and gold markets to maintain the value of the Vietnamese dong and improve the nation's foreign exchange reserves and international balance of payments. ― VNS