Central bank urges SMEs to improve transparency to access credit
State Bank of Vietnam Governor Pham Duc An told the National Assembly that credit growth has reached 12.27 percent this year while calling on small and medium-sized enterprises to improve financial transparency to gain access to bank financing. Macroeconomic stability lays foundation for high growth Ho Chi Minh City proposes capping social housing loan support at VND300 billion State Bank of…
State Bank of Vietnam Governor Pham Duc An addressed the National Assembly, urging small and medium-sized enterprises (SMEs) to enhance financial transparency to secure bank financing. He highlighted that credit growth in the country reached 12.27 percent this year, with short-term deposits making up 80 percent of total deposits.
The governor emphasized the central bank's commitment to maintaining macroeconomic stability, controlling inflation, and supporting economic growth. The banking sector has been actively implementing a refinancing credit package for social housing loans, while credit growth primarily targeted production and business activities at 77.44 percent.
SMEs currently face challenges in accessing credit, primarily due to their small capital bases, weak resilience, fluctuating business plans, and a lack of financial transparency. The governor outlined two requirements for businesses: eliminating the practice of maintaining "two balance sheets" and improving transparency while demonstrating the ability to repay debt.
The State Bank will encourage commercial banks to expand lending to businesses meeting these criteria, and have introduced mechanisms to assist enterprises facing temporary difficulties by allowing debt repayment rescheduling.
Written by urgent.news from SGGP English Edition Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
