Young entrepreneurs have asked the State Bank of Viet Nam (SBV) toconsider loosening monetary policy to inject more capital into themarket and stimulate economic growth.
The proposal was madeat the meeting between the Vietnam Young Entrepreneurs Association(VYEA) and the SBV. The online news website baodautu.vn, quoted SBVGovernor Nguyen Van Binh's immediate reply: "The current monetary policyis very open. Credit caps for most economic sectors have been liftedand banks have a lot of money. The question is whether companies arecompetent enough to meet borrowing conditions."
Officialfigures showed that as of end-August, outstanding loans for agriculturaland rural development increased by 6.1 percent while outstanding loansfor other purposes increased as well, including exports by 4.37 percent,technological application by 12.73 percent, support industries by 6.12percent, small and medium-sized enterprises by 2.57 percent, and realestate by 9.85 percent. However, these growth rates remained relativelylow.
"Banks will knock at your doors if your companies aregood," Binh remarked. While it will be unlikely for the SBV to lowerborrowing standards and conditions, it is currently implementingprojects that connect banks and enterprises, with support from localauthorities.
Entrepreneurs urged the SBV to make it easierfor start-up companies to access bank credit, especially trust loans.Binh noted that Vietnam's policy makers have already issued documentsthat aim at boosting the provision of trust loans, and commercial banksand credit rating agencies were likely to take their first cautioussteps toward providing loans without requiring collateral by evaluatingcompany portfolios and leadership.
Nguyen Thi Hong, the SBVdeputy governor, said earlier this month that if assessments ofcompanies' payment capacity and business plans were positive, creditinstitutions may provide trust loans.
Experts said bothbanks and companies needed each other to spend capital, but much workremained to be done to develop trust before additional credit would beextended.-VNA
The proposal was madeat the meeting between the Vietnam Young Entrepreneurs Association(VYEA) and the SBV. The online news website baodautu.vn, quoted SBVGovernor Nguyen Van Binh's immediate reply: "The current monetary policyis very open. Credit caps for most economic sectors have been liftedand banks have a lot of money. The question is whether companies arecompetent enough to meet borrowing conditions."
Officialfigures showed that as of end-August, outstanding loans for agriculturaland rural development increased by 6.1 percent while outstanding loansfor other purposes increased as well, including exports by 4.37 percent,technological application by 12.73 percent, support industries by 6.12percent, small and medium-sized enterprises by 2.57 percent, and realestate by 9.85 percent. However, these growth rates remained relativelylow.
"Banks will knock at your doors if your companies aregood," Binh remarked. While it will be unlikely for the SBV to lowerborrowing standards and conditions, it is currently implementingprojects that connect banks and enterprises, with support from localauthorities.
Entrepreneurs urged the SBV to make it easierfor start-up companies to access bank credit, especially trust loans.Binh noted that Vietnam's policy makers have already issued documentsthat aim at boosting the provision of trust loans, and commercial banksand credit rating agencies were likely to take their first cautioussteps toward providing loans without requiring collateral by evaluatingcompany portfolios and leadership.
Nguyen Thi Hong, the SBVdeputy governor, said earlier this month that if assessments ofcompanies' payment capacity and business plans were positive, creditinstitutions may provide trust loans.
Experts said bothbanks and companies needed each other to spend capital, but much workremained to be done to develop trust before additional credit would beextended.-VNA
