PM affirms resolve to reduce interest rates

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VietnamPlus English - 70 month(s) ago 42 readings 3 duplicate news

PM affirms resolve to reduce interest rates

Prime Minister NguyenTan Dung has requested continued implementation of the interest rate reduction roadmap following the trend of slowing inflation as part of the monetary policy.

PM Dung made the request at the regular cabinet meeting held in Hanoi on May 3-4, which discussed the socio-economic situation in April and the first four months of 2012, and measures to remove difficulties for enterprises.

Enterprises should be granted favourable conditions to access loans and strengthen their production and business, he said.

He also asked the State Bank of Vietnam (SBV) to promptly restructure the banking system, ensure liquidity and take measures to deal with bad debts.

PM Dung and cabinet members agreed that there were positive changes in the socio-economic situation in April and the first four months of this year, especially with measures to curb inflation and stabilise the macro-economy.

Regarding monetary policy and credits, the SBV took several measures to reduce the interest rate, leading to a 1-1.5 percent reduction in the interest rate compared with the beginning of the year.

It also implemented policies to support agriculture, rural areas, small and medium-sized enterprises, goods production for export and processing industries.

During the four-month period, total export value was estimated to reach 33.4 billion USD, a rise of 22.1 percent compared with the same period last year.

The trade deficit stood at 176 million USD, equivalent to 0.53 percent of the total export value. The figure is much lower than that of the same period last year (more than 4.5 billion USD), causing positive impacts on trade balance and the foreign currency reserves.

Industrial production in March and April made remarkable improvements compared with the first two months. Agroforestry and fishery production was able to maintain growth.

Cabinet members, however, pointed out some shortcomings in the economy, such as high interest rates, falling lending, a large number of businesses ceasing operation, some areas where people still struggle for a living and lower industrial production growth than in the same period last year.

Regarding the implementation of measures to reach the economic growth target, cabinet members said a GDP growth of 4 percent in the first quarter, though much lower than the same period of the two
previous years, is a reasonable level in the context of efforts to curb inflation and stabilise the macro-economy.

They said initial results achieved in curbing inflation, stabilising the macro-economy, export-import growth and agricultural production development in the first four months of this year created favourable conditions to boost business and production, increasing growth in the quarters to come.-VNA

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