Prime Minister Nguyen Tan Dung has emphasised the important role the State Bank of Vietnam plays in ensuring the country will weather the storm in 2009 as a consequence of the global crisis.

“The central bank must act as a key consultant to the Government in introducing policies to curb an economic slowdown and maintain economic growth,” said Mr Dung at a meeting in Hanoi to set directions for the banking sector in 2009.

Flexible monetary and exchange-rate policies will be necessary to stimulate investment and spending, maintain socio-economic stability and secure the banking system, said the PM.

He asked the sector to intensify inspection to ensure transparent operations, improve credit quality and upgrade management capacity, focusing on resolving increasing bad debts.

The global economic is expected to grow 2.2 percent in 2009 against 3.7 percent this year. Many developed countries are in recession while growth slows in developing countries. As a result, an adverse impact on Vietnam seems inevitable.

The central bank’s governor Nguyen Van Giau reassured the meeting that the bank will give priority to preventing an economic slowdown and taming inflation in 2009. Commercial banks will work hard to meet businesses’ demand for capital to maintain production and boost exports.

According to Mr Giau, the central bank will continue to improve credit quality, bank governance, banking laws and technology. It will cooperate closely with various ministries to ensure cohesive policy, especially between the monetary and the fiscal. It will also enhance the non-cash payment network and enforce the supervision and inspection of banks.

Source: VOV