Hanoi (VNA) - Deputy Prime Minister Vu Van Ninh has urged the State Bank of Vietnam (SBV) to develop 🌄flexible and effective monetary policy initiatives in combination with fiscal policy to ensure macroeconomic stability.

The deputy PM made the request during a conference in Hanoi on December 25 held by the SBV to sum up its implementation of monetary policies and banking operations in 2015, as well as mapping out orientation for the next year. Speaking at the meeting, Deputy PM Ninh said that the country’s economic outcomes achieved in 2015 reflects the Party and State’s adjustment to economic development orientation during 2011-2015, from rapid growth and sustainability to macroeconomic stability, inflation control and growth model renovation from early 2011. Accordingly, GDP growth for 2015 is likely to exceed the National Assembly’s set target, in addition to macroeconomic stability has been ensured and growth model restructuring has obtained initially important results. The government official praised the SBV and the banking sector’s contributions to the outcomes, reflecting in fast and sizable reduction of interest rates, credit growth exceeding set plans, appropriate and stable exchange rate adjustment in line with market movements and interest rates, credit organisations restructuring reaching positive results, and bad debt handling surpassing set objectives. Deputy PM Ninh said that there will be more conducive conditions for national development in the long-run, yet in the short-term, monetary policy and macro finance operations in 2016 will face a range of difficulties as of pressure on low inflation, the volatility of crude oil prices, and the pressure on enhancing domestic economic competitiveness. He urged the banking sector to secure credit growth right from early 2016 to cater for business production activities and improve credit quality in priority areas, in addition to strengthening economic restructuring and growth model innovation, particularly technological innovation, and enhancing enterprises’ competitiveness. It is necessary to strengthen strict control over loans for real estate and consolidate banking system safety after restructuring of credit institutions, particularly applying international standards in banking management, Deputy PM Ninh stressed. He also suggested that the SBV responsively adjust exchange rate under market mechanism, while promoting administrative reform and gradually operating credit policy towards market signals. Reports by the SBV at the conference showed that the banking sector has achieved several important achievements in performing the tasks assigned by the government over the year. Notably, the average interest rate was reduced about 0.2-0.5 percent per year, thereby actively supporting business production activities while ensuring stability of the currency and foreign exchange market.-VNA