Vietnam’s central bank asks lenders to support coronavirus-hit firms

The decision came after the fast-growing economy is at risk of slowing to below 6% for the first time in six years as the virus weakens sectors from tourism to manufacturing.

The country’s gross domestic product, which expanded 7.02% last year, may grow 5.96% this year if the disruption of the virus continues into the second quarter, the government said earlier this month.

The move by State Bank of Vietnam came as authorities stepped up measures to relieve pressure on the economy from a rapidly spreading virus outbreak.

The central bank’s order will ease interest payments on about 11% of the banking system’s outstanding loans, valued at $40 billion, Bloomberg cited Nguyen Quoc Hung, head of the central bank’s credit department, in a recent interview.

The order applies to all payments due January 23 to March 30, the regulator said on its website.

The government said it would stick to this year’s economic growth target of 6.8% and take steps to ease the impact of the outbreak.

Source: Bloomberg, Reuters