Removing difficulties in credit for businesses

Tuesday, 30/06/2020, 23:38 [GMT+7]

Removing difficulties in credit for businesses

On June 30, Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong, Vice-chairman of Khanh Hoa Provincial People's Committee Le Huu Hoang chaired a conference on connecting banks and  enterprises in Khanh Hoa to support customers who meet difficulties due to the Covid-19 epidemic.
 
 
Conference chair
Conference chair
 
Many recommendations
 
At the conference, representatives of associations and businesses presented difficulties and problems about credit relations during the past time, and made requests for solutions.
 
Specifically, Nha Trang - Khanh Hoa Tourism Association proposed SBV to support rescheduling debts at least until June 2016. In addition, it is necessary to reduce conditions in the package of VND16,000 billion for payroll loans. Vice Chairman of Khanh Hoa Transport Association Le Van Linh suggested SBV considering medium and long-term packages to restore production, remove difficulties in loans for enterprises. The provincial Association Real Estate said that the current interest rate support is low compared to the difficulties of enterprises. 
 
General Director of Cam Ranh International Terminal Joint Stock Company Le Thi Hong Minh said, “We have received the policy of reducing interest rates by 1% within 1 year. However, due to the difficult situation, I propose SBV to direct commercial banks to reduce interest rates by more 0.5% until December 31, 2021”. Many other enterprises also shared this propose.
 

 

Representative of Nha Trang - Khanh Hoa Tourism Association saying at the conference.
Representative of Nha Trang - Khanh Hoa Tourism Association saying at the conference.
 
To adjust mechanisms and policies
 
According to the report of the State Bank - Khanh Hoa Branch, the whole province has 7,099 borrowers (including 1,262 enterprises and 5,837 individuals) with outstanding loans of VND27,681 billion affected by the Covid-19 epidemic, accounting for 30.41% of the total outstanding loans in the whole province. As of June 20, branches of credit institutions in the province have adjusted debt terms and extended loans to 987 borrowers who are in difficulties due to the impact of the epidemic, with a loan balance of VND4,184.5 billion. Particularly, the Bank of Social Policy - Khanh Hoa Province has restructured repayment term for 480 individual customers with a loan balance of VND6.8 billion. Branches and credit institutions have exempted and reduced interest for 111 customers with outstanding loans of VND509.75 billion, with total of VND1.62 billion. Also during this period, banks' branches have implemented many preferential credit packages for nearly 7,500 customers with an amount of VND11,875 billion.
Answering the requests of the associations and representatives of enterprises, Nguyen Quoc Hung - Director of Credit Department of economic sectors of the State Bank said, “The bank will make adjustments in mechanisms and policies to release difficulties of enterprises. However, the solutions must base on the currency and macroeconomic safety. We have to supplement and adjust some policies. In this period, it is definitely not possible to calculate interest for enterprises. For new loans, if businesses can prove their effective investment, banks will certainly give them loans…” He also added that the banking will continue implementing solutions to remove difficulties in the spirit of accompanying, sharing and creating facilitating currency policies, interest rates, exchange rates... Specifically, the bank will continue managing currency policies, interest rates and exchange rates actively, flexiblely and suitably, directing credit institutions to ensure adequate supply of capital for the economy, especially to invest in efficient projects.
 
Nguyen Hoai Chieu - Director of Khanh Hoa Branch of the State Bank confirmed that, in the coming time, the branch will grasp and promptly implement the guidelines and policies of the Party and the State as well as directions of the Government, the Governor of the State Bank of Vietnam on currency and credit, guidelines and policies to support the local socio-economic development. Besides, the branch  will monitor and grasp the socio-economic situation and banking activities in the province to send promptly report and requests to the Party Committee and the local authorities...
 
Vice-chairman of Khanh Hoa Provincial People's Committee Le Huu Hoang said that the Provincial Party Committee and the Provincial People's Committee highly appreciated the SBV's direction in monetary policy to support businesses to overcome difficulties caused by the Covid-19 epidemic. He hopes that in the coming time, Khanh Hoa Branh of the State Bank will continue support in removing difficulties and simplifying procedures so that businesses can access credit policies. It is necessary to connect more banks with enterprises to create comprehensive socio-economic development. Credit institutions will accompany enterprises to solve difficulties in capital in production and business.
 
As a conclusion at the conference, the Deputy Governor of the State Bank Nguyen Thi Hong said that regarding the desire to reduce interest rates, it depends on the specific situation of each commercial bank because banks themselves have to mobilize capital. With regard to new loans, the State Bank will continue removing troubles in the regulations to create favorable conditions for enterprises to access. Particularly for the proposals related to the VND16,000 billion package, the SBV has prepared money and will disburse right after the provincial People's Committees confirms. The remaining recommendations of businesses and associations, the State Bank of Vietnam will consider and make appropriate adjustments in the near future.
 
Dinh Lam
 
Translated by T.T