Vietnam central bank raises short‑term funding limit for long‑term loans

The State Bank of Vietnam issued Circular 25, effective 1 July, increasing the maximum share of short‑term funding that banks may allocate to medium‑ and long‑term lending from 30% to 40%. The move is intended to boost credit expansion and support the country's five‑year growth plan.

In a separate draft decree amending Decree 50 on foreign‑exchange reserve management, the central bank proposes adding International Monetary Fund SDRs to reserve accounting, revising the treatment of gold investments, and expanding market‑intervention tools to include foreign‑currency and gold options. The draft also outlines new coordination mechanisms with the Ministry of Finance and clarifies the handling of budget foreign‑currency shortfalls.