HANOI, Dec 5 (Bloomberg): Prime Minister Pham Minh Chinh directed the central bank and credit organizations to immediately raise loan limits for banks and to businesses in good health to boost economic growth, job creation and inflation control, the government website reported.
The State Bank of Vietnam, which currently limits the credit growth of the banking system to 14% and has said it does not plan to increase that this year, has raised quotas for some banks.
Lending in the banking system grew 12% this year through late November, Saigon Giai Phong newspaper reported last month.
The order comes as S&P Global Ratings cautioned that highly-leveraged Vietnamese companies face difficulties servicing loans.
A regulatory crackdown has dealt a blow to Vietnam’s property developers, pummeling domestic debt sales and turning local stocks into the world’s worst performers.
The prime minister instructed the central bank and lenders to focus on supporting consumer and export sectors, according to the government website.
Chinh gave the orders Sunday while meeting with officials in the Mekong Delta province of Bac Lieu. - Bloomberg