PM Nguyen Tan Dung has urged the banking sector to focus on controlling inflation and handling non-performing loans in 2013.

As member of the Cabinet, the “Governor of State Bank of Viet Nam must be responsible for inflation to the Government,” PM Dung stressed while chairing the sector’s conference on Wednesday.

In many other economies, the central banks’ key task is inflation curbing. However, in Viet Nam, the State Bank undertakes two missions, inflation monitoring and economic growth. The Government chief pointed out that the Governor must take actions to maintain both low inflation and growth. “If growth rate is under 5pct, no more jobs will be created, leading to rising unemployment,” he added.

In 2013, the Government sets to continue lowering inflation rate, stabilizing macro-economy and creating momentum for higher growth. In such context, the banking sector is assigned to keep inflation rate under 6.8pct.

The banking sector needs to share difficulties with enterprises through lowering interest rates and rescheduling loans as many of them would go bankrupt without continued credit loans.

Regarding last year’s achievements, PM Dung noted that the banking sector flexibly regulated monetary policy, contributing to reducing inflation and interest rates and facilitating production. Inflation dipped to 6.8pct from 19pct in 2011, mobilizing and lending rates fell 3pct-6pct and 5pct - 9pct, respectively.

Source: http://www.vir.com.vn