30/09/2014 15:21 GMT+7 Email Print Like 0

Constituents hail monetary policies, but more need to be done

Hanoi, September 30 (VNA) – Monetary policies have produced good results so far, but there is still room for improvement, constituents concluded after the Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh responded to questions during the 31 st session of the National Assembly Standing Committee in Hanoi on September 29.

Vu Quang Tung, Director of the ACB Bank branch in the northern province of Quang Ninh, acknowledged that exchange rates for the US Dollar and Vietnamese Dong were stable, while interest rates had declined, particularly lending rates on foreign currencies.

Nguyen Thanh Nam, Deputy Director of the State Treasury in Quang Ninh, spoke highly of the restructuring scheme for the banking sector in 2011-2015. He praised the settlement of non-performing loans (NPLs) by the Vietnam Asset Management Company (VAMC), a government-backed entity established last year to restructure bad debts and bank collaterals.

Commercial banks are under sound management, which means they are less exposed to credit risks, especially real estate credit, he said.

Other experts stressed the importance of investing capital carefully since the rate of eradicating NPLs, which hinder economic development, remained slow.

VAMC bought up around 60 trillion VND (2.8 billion USD) of bad debt, but the situation has yet to improve drastically, Nguyen Van Thuan, Dean of the Finance and Banking Faculty at the Ho Chi Minh City Open University, warned.

However, he hailed the recent stimulus package to provide State officials access to housing loans of 2 billion VND (95,000 USD) each, saying it would fuel the property market, and at the same time, address NPLs, since the majority of NPLs are in real estate.

Tran Thuc Hien, Director General of the Thai Anh Trade and Production Co.Ltd, agreed that the monetary policies introduced are proper. She, however, raised the issue of implementing these policies efficiently, benefiting businesses which are struggling to gain access to capital for production.
VNA/VNP