HANOI: The State Bank of Vietnam (SBV) will not consider increasing policy interest rates and might extend debt rescheduling policies to support enterprises this year, state news agency (VNA) quoted SBV Deputy Governor Dao Minh Tu as saying.

Interest rates have dropped to the lowest level in the past 20 years. Commercial banks say that rates cannot be lower, but the central bank urges efforts to reduce costs to create room for supporting the economy, he said.

The central bank will manage rates in the direction of not increasing operating costs, and based on global economic development and major macro balances, he added.

“The central bank will consider extending Circular 02 on debt rescheduling and retention of debt category to assist business in 2024,” the SBV leader said.

The central bank also sets a credit growth target of 15% for the domestic banking system this year, he said, estimating that with such growth rate, around 2 quadrillion VND (US$81.8 billion) will be pumped into the economy in 2024.

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urce: Emirates News Agency