On July 6, 2022, in Hanoi, the State Bank of Vietnam (SBV) organized a Virtual Conference on the implementation of Decree No. 31/2022/ND-CP on the 2% interest rate support for bank loans extended to enterprises, cooperatives and household businesses.
Deputy Prime Minister Le Minh Khai speaks at the Conference
Proactive coordination to formulate and finalize a Decree on 2% interest rate support for bank loans extended to enterprises, cooperatives and household businesses
In her opening speech, SBV Governor Nguyen Thi Hong shared that, over the past time, in order to support enterprises, cooperatives and household businesses to recover, the SBV had taken the lead in coordinating with the relevant Ministries and agencies to submit to the Government for the issuance of Decree No. 31/2022/ND-CP dated May 20, 2022 on the interest rate support from the State budget for bank loans extended to enterprises, cooperatives and household businesses; on the same day, the SBV Governor also issued Circular No. 03/2022/TT-NHNN providing guidance for the commercial banks’ implementation of Decree No.31/2022/ND-CP.
Deputy Prime Minister Le Minh Khai, Governor Nguyen Thi Hong and representatives from the relevant Ministries and agencies attend the conference
The SBV Governor emphasized that this is an interest rate support policy that utilizes the State budget on a large-scale, and to be implemented through the commercial banks. In the process of formulating the draft Decree, the SBV had proactively coordinated and consulted with the relevant Ministries, agencies, as well as the commercial banks in order to finalize the Decree and the guiding Circular, with the objectives of supporting the access of enterprises, cooperatives and household businesses to bank loans with lower interest rates, thereby helping them to overcome their difficulties, stabilizing and expanding their production and business activities, creating a foundation and a momentum for the economic growth, while still ensuring the principles of fairness, publicity and transparency, reaching out to the right beneficiaries, limiting any error or misconduct during the implementation, the estimation of expenses, and the reimbursement of the interest rate support package.
Governor Nguyen Thi Hong speaks at the Conference
Speaking at the Conference, First Deputy Governor Dao Minh Tu of the SBV said that, over the past time, in order to resolve the difficulties for the COVID-affected enterprises and people, implementing the directions of the Party, the Government and the Prime Minister, the SBV has managed the monetary policy in a proactive and flexible manner, in close coordination with the fiscal policy and other macroeconomic policies in order to control the inflation, maintaining the stability of the money and the foreign exchange markets, ensuring prudent banking operations, contributing to maintaining the macro-economic stability.
As of June 30, 2022, the total credit outstanding reached VND 11,400 trillion, an increase of 9.35% as compared with that of the end of 2021, and of 6.47% as compared with that of the same previous period. The mobilized capital reached VND 11,800 trillion, an increase of 4.51% in comparison with that of the end of 2021, and of 4.09% as compared with that of the same previous period. The credit structure had focused on production and business, priority fields; the credit for potentially risky areas had been strictly controlled. The accumulated value of rescheduled debts and loans which had been maintained in the debt classification was VND 709,038 billion VND. The total value of interest and fee exemption and reduction was over VND 50,000 billion.
The SBV Deputy Governor further shared that this interest rate support scheme had been implemented on a large scale through the commercial banks. Therefore, in order to successfully implement the political tasks assigned by the National Assembly and the Government, as well as to bring about practical effectiveness and positive impacts on the economy, the SBV would like to request the relevant Ministries, agencies, local authorities, commercial banks and customers to further collaborate closely with the SBV in order to consistently implement the tasks as assigned in Decree No. 31/2022/ND-CP.
SBV First Deputy Governor Dao Minh Tu speaks at the Conference
The SBV would continue to closely monitor the macro-economic situations, the international and domestic money markets in order to manage the monetary policy in an active and flexible manner, as well as to control the inflation, maintain the macro-economic stability; thereby, enabling the economic recovery and development; closely coordinating with the relevant Ministries and agencies to promptly resolve any obstacles faced by the commercial banks; publicizing the interest rate support limits in a quick manner; enhancing the cooperation with the media agencies to provide prompt and timely information and communication about the interest rate support policy, helping the enterprises, cooperatives and household businesses to clearly understand about the policy, and promptly get access to the interest rate support package provided from the State budget through the commercial banks; focusing on the inspection and supervision of the extension of bank loans using the interest rate support, ensuring that the policy reaches out to the right beneficiaries.
At the Conference, the representatives from the SBV, the relevant Ministries and agencies continued to listen to various comments and suggestions by the commercial banks, representatives of the business community, and were actively engaged in answering the questions and concerns from the participants regarding the interest rate support program.
Implementing the interest rate support policy promptly, effectively and reaching out to the right beneficiaries
Speaking at the Conference, Deputy Prime Minister Le Minh Khai highly commented the efforts of the SBV as well as the relevant Ministries and agencies in the implementation of the tasks assigned by the National Assembly and the Government.
The Deputy Prime Minister emphasized that the 2% interest rate support policy was a new and appropriate policy in the current conditions, which had enabled more people and enterprises to access financial resources with low cost, taking advantage of this opportunity to develop their production and business activities in the new situation, contributing to stimulating both sides of supply and demand, creating a foundation for strong economic growth in a more sustainable direction.
In the coming months, in order to implement the interest rate support policy as stipulated in Decree No.31/2022/ND-CP in a timely, effective and appropriate manner, contributing to the socio-economic recovery and development as directed by the National Assembly and the Government, Deputy Prime Minister Le Minh Khai directed the SBV to continue the close coordination with the relevant Ministries and agencies to regularly monitor, supervise and evaluate the results of the implementation of the interest rate support from the State budget for loans extended to enterprises, cooperatives and household businesses in order to promptly propose effective solutions, remove any difficulties and obstacles in the process of implementing the Decree. The relevant Ministries and agencies, on the basis of their mandates, functions and assigned tasks, must continue to collaborate closely with the SBV and the banking sector in order to effectively implement this policy.
In her concluding remarks at the Conference, Governor Nguyen Thi Hong requested the credit institutions to continue to support, provide guidance and interact with the businesses to help them understand clearly about this policy, as well as to support the businesses in the process of implementing this Decree. The Governor further requested the SBV entities, as well as the SBV municipal and provincial branches, to closely monitor and actively coordinate with the relevant Ministries and agencies to remove any difficulties and obstacles. She also affirmed that all of the comments and suggestions made at this Conference would be noted and considered carefully by the SBV functional entities, as well as the relevant Ministries and agencies, in order to provide appropriate instructions in the future.
Le Hang