Continuing the Bank-Enterprise Connection program with a view to removing the difficulties and recovering production after the pandemic, on June 1-2, 2020 the State Bank of Vietnam (SBV), in coordination with the Provincial People’s Committees (PPCs) of Ba Ria – Vung Tau and Binh Phuoc, organized Bank-Enterprise Connection Conferences in those provinces in order to support the Covid-19 affected customers. The Conferences were under the co-chairmanship of SBV Deputy Governor Nguyen Thi Hong and the Chairpersons of the two PPCs.
Bank-Enterprise Connection Conference in Binh Duong province
Also attending the Conferences were the leaders of the local authorities, the relevant departments and agencies; representatives of the SBV departments and branches, the associations, commercial banks and businesses operating in those provinces.
Listening, sharing difficulties and taking recommendations from enterprises
At the Conferences, the representatives from several associations and businesses mentioned a number of issues and obstacles in accessing bank loans and proposed some possible solutions to the SBV and the relevant departments/agencies in order to create more favorable conditions for accessing bank loans for production and business operations in the coming time.
Mr. Tran Hoang Y, Vice Chairman of Vietnam Cashew Association, and Mr. Tran Phu from Thanh Cong Transport Company, commented that throughout the Covid-19s, the banks have shared with the businesses through practical measures, especially the reduction of the interest rates for medium-term loans, as well as the rescheduling of debt payments. This was a necessary measure in a timely manner, helping businesses to overcome the difficulties caused by the Covid-19 pandemic. They suggested that the banks should consider to extend and reschedule the debt payments for loans obtained to purchase raw cashew nuts, and reduce the lending interest rates to support the businesses’ losses…
Joining hands with the businesses to continue overcoming the difficulties, adapting to the "new normal" period
Having gone through a difficult period caused by the pandemic enduring from the beginning of the year, up to now, the whole banking system has provided maximum support for the businesses to overcome the difficulties, recover production and business operations, and quickly adapt to the "new normal” period.
On the SBV’s side, Mr. Nguyen Quoc Hung, Director General of the Department of Credit for Economic Sectors, shared that, after two months, by May 25, 2020, all of the credit institutions, including the finance companies and the foreign banks, have been robustly involved; the whole banking sector has rescheduled debt payments for over 223,000 borrowers with the loan outstanding of VND 151 trillion; waived and reduced the interest for over 320,000 borrowers with the loan outstanding of over VND 1,140 trillion; provided new loans with preferential interest (0.5-2.5% lower than that before the outbreaks) with the accumulated amount since January 23, 2020 of VND 767 trillion for 196,000 borrowers. Vietnam Bank for Social Policies (VBSP) has extended debt payment for over 150,000 borrowers with the loan outstanding of over VND 3.8 trillion; adjusted loan maturities for over 75,000 borrowers with the loan outstanding of nearly VND 1.6 trillion; provided new loans to over 680,000 borrowers with the loan outstanding of over VND 25 trillion. According to Mr. Hung, the SBV has been amending a number of articles of Circular 01/2020 in order to be in line with the practical developments of the market. For the recommendations of extending the enforcement duration of Circular 01, the SBV would take into full consideration in order to come up with an appropriate decision, probably it can be extended one more year after the Prime Minister’s declaration of the end of the pandemic, or longer based on the developments of the disease.
On the provinces’ side, the Chairpersons of the PPCs of the two provinces made high evaluation for the positive results of the support from the local credit institutions. In the coming time, the PPCs would further mobilize resources to contribute to the trust funds via the VBSP in order to provide optimal support to the Covid-19 affected businesses and people.
Deputy Governor Nguyen Thi Hong speaks at the Conference in Ba Ria – Vung Tau province
In concluding the Conferences, Deputy Governor Nguyen Thi Hong affirmed that the SBV would continue to adjust the monetary policy in a flexible manner. The banking system would also ensure sufficient capital for the economy, supporting all sectors and fields to overcome the difficulties and impacts of the pandemic.
Moreover, the SBV Deputy Governor shared that the SBV has continued to direct the commercial banks to focus on simplifying the process and procedures, facilitating their customers’ access to the support packages of the banking sector, and conduct effective solutions to lower the lending interest rates at reasonable levels in order to support the businesses and the market.
The SBV Deputy Governor also required the Department of Credit for Economic Sectors and the Banking Supervision Agency to note down the specific comments and recommendations by the enterprises in those provinces and consolidate with the comments and recommendations obtained in other provinces, then quickly propose amendments to Circular 01 in line with the practical developments and the demands of the businesses after the pandemic.
Le Hang