September target for bringing down bad loans to 3%.
The State Bank of Vietnam (SBV) has set a new target of bringing down non-performing loans (NPLs) to less than 3 per cent by September.
SBV Governor Nguyen Van Binh said that the new target is feasible provided that all credit institutions step up and take drastic measures to handle NPLs to meet the new deadline.
He added that the central bank’s decision to extend the credit room of credit institutions will depend on the way they handle NPLs. He pointed out that, if necessary, the central bank can raise the credit growth target for this year to 17 per cent from the 13-15 per cent set earlier this year, to boost economic growth.
According to the central bank’s figures, NPLs stood at 3.81 per cent as at the end of March.
Unlike previous years, credit growth in 2015 has been strong since the opening months, rising more than 6 per cent in the first half.