Central bank raises credit growth cap, pumps $17bn into economy

Businesses and consumers are pleased because the rise, plus the space of the previous limit, is expected to pump up to VND400,000 billion ($17 billion) into the credit room. The State Bank upped the loan growth target for the entire year 2022 to 15.5-16% with less than a month remaining in the year.

With the overall credit balance of the economy expected to exceed VND10,400 trillion ($441 billion) by the end of 2021, this move will assist infuse an additional VND156,000-200,000 billion ($6.6 - 8.5 billion) into the economy from now until the end of 2022.

When the remaining 1.8% credit capacity in the original plan is factored in, the overall credit ceiling for the economy in December alone is expected to exceed VND400,000 billion ($17 billion), leaving plenty of opportunity for commercial banks to offer capital to enterprises and the economy. 

Firms engaged in agriculture, export, small and medium-sized companies, supporting industries, acquiring social housing, and other areas that contribute to the economy's growth will be given priority.

Source: VnEconomy