TEXT-Vietnam c.bank monetary market review July 18-25

HANOI, July 28 - The following is a Reuters translation of an announcement distributed by the State Bank of Vietnam.

Reuters is not responsible for the contents.

Public Announcement of the State Bank of Vietnam (SBOV) on the banking and monetary market in the week from July 18, 2008 to July 25, 2008.

1. State Bank of Vietnam's measures:

- In an effort to support payment ability of commercial banks and stabilise the market, the SBOV continued its offer to buy valuable papers via open market transactions, with volume of 7 trillion dong to 10 trillion dong per session and at a rate of 15 percent on 7-day term.

- The SBOV continued to refinance commercial banks to support their payment and meet corporate demand for working capital, contributing to fulfil 2008 economic growth targets and to set pre-conditions for economic stability in the upcoming years as stated by the government.

- According to Document 6502/NHNN-THNH dated July 16, 2008 issued by the SBOV, the Managing Board of Inter-bank E-Payment System allowed some banks' units to join the inter-bank e-payment system.

- On July 21, 2008, the governor of the SBOV issued Decision 1616/QD-NHNN, assigning state-owned Vietinbank to financially support the project "Improving and modernising the land management system of Vietnam".

- On July 23, 2008, the governor of the SBOV issued Document 6704/NHNN-CNH, approving United Overseas Bank Limited (UOB) to raise its stake in partly private Southern Bank to 15 percent from 10 percent.