Vietnam c.bank says 2022 monetary policy to support recovery, eyes bad debt

HANOI (Reuters) – Vietnam’s central bank said on Tuesday that Vietnam’s monetary policies in 2022 will aim to keep inflation in check, while supporting the country’s economic recovery, as Vietnam’s deputy governor warned of the risks of another surge in non-governmental sectors. working loans.

The economic growth of the Southeast Asian country is largely dependent on increased credit, although the authorities are trying to reduce this dependence.

Total bank lending in Vietnam as of December 22 increased by 12.68% compared to the end of 2020, according to a statement from the State Bank of Vietnam.

Central Bank Deputy Governor Dao Minh Tu said at a press conference that credit growth in Vietnam next year is expected to rise to about 14%.

Inflation this year will be well below the 4 percent target, Tu said, adding that the country’s foreign exchange reserves are now more than $100 billion.

Tu said that the proportion of non-performing loans in the banking system is on the rise due to the coronavirus pandemic and could rise further.

“The proportion of loans classified as bad debt is about 8.2%, and it may increase further if the epidemic continues for a longer period,” Tu said.

The government has official economic growth targets of 6.5% for both this year and 2022, but some analysts have warned that due to the pandemic this year it could be 3% or less.

Editing by Ed Davies

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