PM orders measures to facilitate finance, banking activities

Prime Minister Pham Minh Chinh held a working session with the State Bank of Vietnam Saturday to review and step up the issuance of two important circulars related to the finance-banking sector.

Discussing the draft circular on debt restructuring and rescheduling, and keeping debt groups unchanged, PM Chinh asked the SBV to continue fine-tuning the document in the direction of expanding the coverage of the circular as well as the duration of implementation in an appropriate manner.

PM orders measures to facilitate finance, banking activities
Stacks of money are counted at a commercial bank in Vietnam. Photo by VnExpress/Giang Huy

At the session, also attended by the Ministry of Finance and the Ministry of Justice, he required devising tools to monitor and inspect the implementation with a view to raising the responsibility of credit organizations and ensuring timely, flexible, and effective policy response.

About the draft circular on the purchase and sale of corporate bonds by credit institutions and foreign bank branches, the PM requested the design of support mechanisms to enhance market confidence and allow credit institutions to immediately repurchase corporate bonds. Additionally, favorable conditions should be created for credit institutions to invest in and lend corporate bonds to increase the supply, liquidity, and develop the market on a safe and effective basis.

The government leader assigned the SBV to continue directing commercial banks to reduce interest rates appropriately in support of the people and businesses, promptly perform tasks assigned in the government’s resolution on several solutions to remove difficulties and promote the safe, healthy and sustainable development of the real estate market.

The SBV was also urged to early submit a plan to restructure weak credit institutions, especially the Saigon Joint Stock Commercial Bank (SCB), work closely with the Ministry of Construction to effectively roll out the VND120 trillion ($5.2 billion) credit package for social housing and accommodation for workers, as well as soon complete the drafting of the revised Law on Credit Organizations to tackle existing obstacles.