Central bank repeats credit curb orders

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The State Bank of Vietnam on Friday reiterated its order to commercial lenders to cut back on credit for non-production companies and focus on providing loans for small businesses and the agriculture sector.

According to a statement on the central bank's website, its branches around the country will inspect local banks to make sure that the order is strictly followed.

It is not the first time the central bank has called for banks to abide by lending priorities that it has set.

On March 1 it had already ordered all lenders to limit credit to non-production businesses at 22 percent of total loans by June 30, and at 16 percent by the end of the year. The central bank said it will double reserve requirements for banks that fail to curb their credit growth and continue to lend to non-priority sectors.

The government in February approved a plan to cut annual credit growth to below 20 percent from the initial target of 23 percent as part of a series of measures to curb inflation.

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