As of July 28, capital mobilisation increased by 5.31%, the system credit increased by 3.45 percent compared to the end of 2019 (the same period increased by 7.13%).
The report of the State Bank of Vietnam (SBV) to the Ministry of Planning and Investment on the implementation of monetary policy showed that, in July 2020, SBV continued to run credit in line with the capital demand of the economy.
SBV continued to carry out timely and effective management solutions to contribute to solving difficulties, promoting the recovery of production and business, supporting the economy, minimising the impact of Covid-19 epidemic. At the same time, SBV also drastically directed credit institutions to reduce costs and profits, creating favourable conditions for reducing lending rates in the next time, contributing to alleviating difficulties for the economy.
By July 13, 2020, credit institutions restructured the repayment period for over 272,000 customers with a loan balance of over 210 trillion dong. Besides, they also exempted, reduced, lowered interest rates for more than 435,000 customers with more than 1.27 quadrillion of outstanding loans. The new loans with preferential interest rates and cumulative sales from January 23, 2020, to then reached 1.17 quadrillion dong for more than 247,000 customers. The lowering level of interest rates was popular from 0.5 percent to 2.5 percent compared to before the outbreak of Covid-19.
Particularly, Vietnam Bank for Social Policies (VBSP) had extended the debt to nearly 154,000 customers with a loan balance of more than 3.884 trillion dong, adjusted the repayment period for more than 75,000 customers with a loan balance of nearly 1.6 trillion dong, new loans for nearly 1,2 million customers with a loan balance of nearly 44 trillion dong.
Regarding the exchange rate, over the past time, SBV said that the exchange rate was operated proactively and flexibly according to the market signals, in line with the supply and demand of foreign currencies, ensuring the efficient and smooth operation of the foreign exchange market. Thanks to that, the market could adequately and promptly respond to legitimate foreign currency demands of organisations and individuals; consolidate the state foreign exchange reserves when market conditions were favourable.
Similarly, interest rates were also managed by this agency to keep stable in line with macroeconomic developments, inflation and money market.
At the end of July 2020, interest rates in the dong were popular at 0.1 percent to 0.2 percent per year for demand deposits at terms of less than one month; 3.7 percent to 4.25 percent per year for deposits from one month to less than six months; 4.4 percent to 6.4 percent per year for deposits with a term of six months to less than 12 months; 6.0 percent to 7.3 percent per year for tenors of 12 months or more.
Dong lending rates were popular at around 6 percent to 9 percent per year for the short term; 9 percent to 11 percent per year for the medium and long term. The maximum short-term loan interest rate in dong for customers with transparent and healthy financial status was in the priority field at five percent per year. The interbank offered interest rates remained stable at low levels.
