On May 27, 2022, in Hanoi, the State Bank of Vietnam (SBV) organized a virtual conference on the implementation of the 2% interest rate support policy from the State budget of VND 40,000 billion in accordance with Resolution No.31/2022/ND-CP of the Government and Circular No. 03/2022/TT-NHNN of the SBV. First Deputy Governor Dao Minh Tu of the SBV chaired this Conference.
Deputy Governor Dao Minh Tu speaks at the Conference
The Conference is aimed to disseminate widely the contents and tasks as stated in Decree No. 31/2022/ND-CP and Circular No. 03/2022/TT-NHNN, and to provide specific instructions for all commercial banks and local authorities in order to bring the policy into life, contributing to supporting enterprises and recovering the economy.
Proactiveness and determination in submitting to the Government for the promulgation of Decree No. 31/2022/ND-CP, and Circular No. 03/2022/TT-NHNN providing guidance for commercial banks’ implementation of the interest rate support policy
In his opening speech, First Deputy Governor Dao Minh Tu emphasized that, right at the beginning of 2022, the SBV had directed and guided the credit flows to focus on production and business activities, priority fields, while controlling credit for potentially risky areas. As a result, as of May 20, 2022, the total credit outstanding had reached VND 11,000 trillion, an increase by 7.66% as compared to that of the end of 2021; the credit structure had focused on production and business, priority fields as directed by the Government and the Prime Minister, as well as the sectors and areas listed in the Socio-Economic Recovery and Development Program; credit for potentially risky areas had been strictly controlled. Those results have contributed to robustly promoting economic activities, creating a momentum for the recovery of the macro indexes; thereby, helping the economy to gradually recover and develop.
SBV First Deputy Governor Dao Minh Tu chairs the Conference
Implementing Resolution No. 43/2022/QH15 of the National Assembly and Resolution No. 11/NQ-CP of the Government, the SBV has proactively coordinated with the relevant Ministries, agencies and commercial banks to submit to the Government for the promulgation of Decree No.31/2022/ND-CP and issued Circular No. 03/2022/TT-NHNN providing guidance for commercial banks’ implementation of the interest rate support policy as requested by Decree No.31/2022/ND-CP.
“This is the first policy on interest rate support using the State budget, and to be implemented on a large scale through the commercial banks, with the goal of supporting the enterprises, cooperatives and business households to access bank loans with lower interest rates, thereby overcome their difficulties, stabilizing and expanding their production and business activities, creating a foundation and a momentum for economic development; at the same time, ensuring the principles of equality, transparency, reaching out to the right beneficiaries, prevention of any misconduct during the implementation and the reimbursement of the interest rate support package,” the SBV Deputy Governor emphasized.
The 2% interest rate support policy is an additional solution and will go in parallel with other measures initiated by the SBV in order to create favorable conditions for the people and enterprises to access bank loans with lower interest rates, thereby developing their production and business in the new situation, contributing to stimulating the supply and demand, creating a foundation for the economic growth on a more dynamic and sustainable pathway.
According to reported results, by the end of April 2022, the accumulated value of rescheduled debts since the issuance of Circular No. 01/2020/TT-NHNN had reached over VND 695 trillion for more than 1.1 million customers. The loan outstanding which had been maintained in the debt classification was over VND 198 trillion VND for nearly 680,000 customers; the accumulated value of debts that benefited from the interest and fee exemption and reduction, while still maintaining the debt classification was nearly VND 91 trillion for nearly 490,000 customers. The outstanding of the debts that benefited from the interest exemption and reduction, while still maintaining the debt classification was nearly VND 18 trillion for more than 166,000 customers.
Ms. Ha Thu Giang, Deputy Director General of the Department of Credit for Economic Sectors, speaks at the Conference
At the Conference, Ms. Ha Thu Giang, Deputy Director General of the Department of Credit for Economic Sectors, made a brief presentation about the key contents of the Decree and the Circular, focusing on the subjects of application, the conditions and sequences, the procedures for payment and final accounting of the interest rate support package.
Sharing about the communication plan regarding the interest rate support policy, Ms. Le Thi Thuy Sen, Director General of the SBV Communication Department, said: “the Communication Department will focus on both communication means and communication contents. About the communication means, internally in the SBV system, we will coordinate with the Department of Credit for Economic Sectors and other relevant entities to prepare documents for clear explanation about the interest rate support policy, which is scheduled to be circulated to all Directors of the SBV provincial and municipal branches in the next three to five days. In addition, we will circulate the information to all commercial banks, thereby improving the efficiency of the information and communication on the interest rate support policy. Moreover, we will also communicate the information to the media agencies in and beyond the banking sector to publicize it in the media, because this is a critical policy of the State to support the people and enterprises”.
Ms. Le Thi Thuy Sen, Director General of the SBV Communication Department, speaks at the Conference
In addition, the Communication Department would enhance and diversify the means of communication on the interest rate support policy; implement communication programs about financial education, such as “Holding the purse-strings" show, which is broadcast on VTV1 channel, etc. About the communication contents, the Communication Department will focus on the matters of great interest to the public, especially the nature of the interest rate support policy, the scope and subjects of application of the policy, the sequences and procedures for the policy access, etc.
Bringing support policies into life at an early stage
That was the request by Deputy Governor Dao Minh Tu of the State Bank of Vietnam (SBV) for all entities in the banking industry, with a view to urgently and widely implement the 2% interest rate support program right from today, focusing on the implementation of the following tasks:
For the commercial banks: Continuing to effectively implement Directive No. 01/CT-NHNN dated January 13, 2022 of the SBV Governor on the implementation of the key tasks of the banking industry in 2022; Immediately implementing the interest rate support program in the entire system as requested by Decree No. 31/2022/ND-CP of the Government, and Circular No. 03/2022/TT-NHNN of the SBV;
Issuing internal guidelines to instruct their branches to implement consistently the interest rate support program as requested by Decree No. 31/2022/ND-CP and Circular No. 03/2022/TT-NHNN, and reporting to the SBV in order to facilitate the close monitoring of the commercial banks’ implementation of this program;
Registering their respective plans for the implementation of this interest rate support program using the state budget for 2 years (2022 and 2023), and on an annual basis as required by Decree No. 31/2022/ND-CP, Circular No. 03/2022/TT-NHNN and the guidance of the SBV as stated in Document No. 3442/NHNN-TD dated May 24, 2022; Submitting their plans to the SBV within this week so that the SBV can consolidate and register the overall plan with the Ministry of Planning and Investment (MPI), and for the MPI to submit it to the competent authorities for the allocation of funding for the interest rate support program; Proactively balancing their capital sources to invest in effective production and business projects and plans, especially in sectors and fields which are subject to the interest rate support as prescribed for in Decree No. 31/2022/TT-NHNN;
Promoting the communication activities about the interest rate support policy so that customers can obtain the information and access the policy at an early stage;
Continuing to effectively implement the solutions to remove the difficulties for their customers as directed by the SBV; Proactively handling with the difficulties and promptly reporting to the SBV and the Provincial People's Committees’ leadership on any constraints, suggestions and recommendations during the implementation process; Ensuring that the implementation of the interest rate support program is in line with the applicable regulations, targets the right beneficiaries, for the right purposes; preventing any misconduct, risks, and policy exploitation for personal good.
Vietnam Bank for Social Policies is requested to further implement effectively the credit programs and policies as directed by the Government and the Prime Minister, especially Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP…
The SBV provincial and municipal branches are requested to fully understand the content and the requirements of Decree No. 31/2022/ND-CP and Circular No. 03/2022/TT-NHNN in order to direct the branches of the credit institutions in their respective jurisdiction to implement the interest rate support program; Monitoring the situation and the implementation results of this program by the commercial banks’ branches in their jurisdiction; promptly collecting information about and handling with any emerging difficulties and constraints in order to improve the effectiveness of the policy implementation; Promoting the communication activities about the interest rate support offers by the commercial banks in their jurisdiction; Inspecting and supervising closely and regularly the lending operations applying the interest rate support by the commercial banks’ branches in their jurisdiction in line with the applicable requirements; Frequently coordinating with the relevant departments, agencies, People's Committees at all levels in their jurisdiction in order to share, communicate and disseminate information about the mechanisms, policies, implementation results, and proactively handle with any issues arising in the lending process applying the interest rate support package by the commercial banks' branches in their jurisdiction; Reporting and proposing to the People's Committees of the provinces and the centrally-controlled cities, as well as to the SBV Governor, in order to address any arising issues beyond their authority; Preparing the necessary contents for the Prime Minister's meeting with the ministries, agencies and local authorities on the implementation progress of Decree No. 31/2022/ND-CP.
SBV Deputy Governor Dao Minh Tu also requested the SBV entities to further advise the SBV's Board of Management on how to effectively implement the solutions for the monetary, credit, interest rate management, in order to create a favorable environment and conditions to maximize the effectiveness of the interest rate support program from the State budget; Actively organizing training courses for the commercial banks on the interest rate support policy, especially the contents related to the conditions, processes and procedures for payment and settlement of the interest rate support in conformity with the applicable regulations; Closely monitoring the implementation results of the interest rate support by the commercial banks, and advising the SBV Governor on how to implement the SBV’s tasks and functions as required in Decree No. 31/2022/ND-CP; Coordinating with the professional units of the relevant ministries and agencies to promptly answer any enquiries of the commercial banks in the implementation process of providing loans using the interest rate support to enterprises, co-operatives and business households; Carrying out inspection and supervision of the lending applying the interest rate support by the commercial banks as required by the applicable regulations.
In addition, SBV Deputy Governor Dao Minh Tu also requested the SBV entities, especially the Communications Department, to enhance their coordination with the media agencies inside and outside the banking sector to improve the efficiency of the information and communication about the interest rate support policy; helping enterprises, co-operatives, business households understand and access the information about the interest rate support policy from the state budget through the system of commercial banks at an early stage.
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