M2 is a measure of the money supply that includes all elements of M1 as well as "near money." M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds and other time deposits. "Creating plentiful liquidity is also aimed at helping reduce lending interest rates," she said. Analysts say, however, that to reduce the lending interest rates primary market interest rates must be lowered. It is this financial pressure created by the increasing bad debts that will make it hard to bring interest rates down immediately.

Source: Viet Nam News September 12, 2016 03:00 UTC