On average, more than 7,100 billion VND is poured into the economy every day

That is the information given by Governor of the State Bank (SBV) Nguyen Thi Hong at the regular Government meeting in April 2022 taking place on the morning of April 29.

At the end of December 2021, outstanding credit to the economy reached nearly 10.45 million billion VND. Thus, with a growth rate of 6.75%, equivalent to about VND705,000 billion in credit, more credit was poured into the economy in the first 4 months of this year.

Previously, data from the State Bank showed that by the end of March 31, credit growth increased by 5.04%, 2.3 times higher than last year. In the first quarter of 2021, credit growth was only 2.16%.

Thus, in just 25 days of April, credit poured into the economy increased by nearly 180,000 billion VND, equivalent to an average of more than 7,100 billion VND injected into the economy every day.

“In 2022, credit growth is expected to be about 14%. Credit accelerated significantly in March and April, credit growth as of April 25 reached 6.75% compared to the end of 2021, showing that the economy’s huge credit demand in the context of strong recovery, this poses a problem for the State Bank to manage monetary policy in the last months of the year, both to meet the credit needs of the economy and at the same time not being subjective with inflation, maintaining macroeconomic stability,” said Governor Nguyen Thi Hong.

In parallel with the above developments, Ho Chi Minh City’s credit balance as of the end of April 2022 reached VND 3 million billion (equivalent to 27% of the system’s outstanding loans), recording a rather high growth rate of about 7%. compared with the beginning of the year.

According to an expert at Rong Viet Securities Company (VDSC) in the recently released report, credit growth of the whole system by the end of April 2022 is estimated to increase by over 16% over the same period, 2 percentage points against the full-year growth target of 14%.

However, recently, the SBV also said that it will be able to adjust the credit growth target depending on the actual situation.

“Although lending activities to risky sectors such as securities and real estate are being tightened, the effect of the recent tightening of corporate bond issuance will cause the pressure to shift to the banking system, pushing credit growth is higher this year,” said the expert.