PM urges stronger measures to manage interest rates

In an official dispatch, sent to the SBV Governor, the Minister of Public Security, and the Government Inspector General on December 16, the leader noted that the move aims to enhance State management over the banking sector, thus spurring economic growth and achieving all the main targets set in the 2024 socio-economic development plan and another for the 2021-2025 period.

He asked the central bank to coordinate with relevant agencies to keep tabs on the regional and international situation, as well as changes and adjustments in financial and monetary policies of big economies to have timely and effective policy responses.

Priorities should be given to boosting growth in parallel with ensuring macro-economic stability, controlling inflation, and maintaining major economic balances, striving for an economic growth rate of at least 8% in 2025 in order to lay the bedrock for double-digit growth in the 2026-2030 p.

The SBV needs to intensify efforts to drastically and effectively implement measures and tasks in managing interest and exchange rates, and credit growth, the leader said, suggesting a focus on reducing lending interest rates, particularly strictly controlling deposit interest rates at commercial banks. These actions aim to meet capital demands during the year-end period and the first months of 2025, removing obstacles for people and businesses.

Credit institutions engaging in unfair or noncompliant interest rate competition, including both deposit and lending rates, must be strictly handled, he emphasised, urging the central bank to step up inspections and supervisions over the operation of the institutions.

Credit institutions should focus lending on priority production and business sectors and traditional economic growth drivers, such as investment, consumption, and export, along with new engines like digital transformation, green transition, climate change response, circular economy, sharing economy, science-technology, and innovation, the PM said.

The Ministry of Public Security, the Government Inspectorate, and other competent agencies were also requested to continue monitoring the operation of credit institutions, enhance inspections and supervisions, and strictly handle violations./.