|The two per cent interest rate support package with funding from the budget of VND 40,000 billion issued in 2022 (according to Resolution No. 43/2022/QH15) is expected to be a “relief buoy” for businesses to overcome difficulties. Photo: ST|
According to data from the State Bank of Vietnam, by the end of April 2023, sales of 2% interest rate support reached more than VND 105,000 billion, outstanding loans of interest rate support reached nearly VND 52,000 billion, the amount that has been accumulated from customer support since at the beginning of the program reached about VND 409 billion.
More specifically, at a recent meeting at the State Bank of Vietnam on this issue, Ms Ha Thu Giang – Director of the Department of Credit for Economic Sectors, the State Bank Vietnam, said that up to now, among forty-four banks Commercial banks have been notified of the interest rate support limit, thirty-two banks had already incurred the amount of interest rate support.
For example, VietinBank has 96 out of 155 branches of the bank implementing the program, lending to 224 customers, the loan balance is 12,300 billion dongs, and the interest rate support is 96 billion dongs.
As of April 30, 2023, BIDV has supported 98 customers, outstanding loans of interest rate support reached VND 4,960 billion, and the amount of interest support was VND 52.2 billion.
At Agribank, as of May 18, this bank has supported 879 customers. As a result, loan sales reached VND 9,500 billion, outstanding loans reached VND 4,800 billion, and the amount of support was VND 44 billion.
Although it has been very active, it can be seen that the disbursement results of the 2% interest rate support package have not been as expected. Although, according to Ms Ha Thu Giang, there are many reasons, such as the socio-economic context had changed a lot compared to when the interest rate support program was developed, and customers do not meet the conditions for interest rate support. Moreover, if customers meet the conditions but are afraid of inspection and inspection, it is difficult to assess the possibility of “recovery” because the world and domestic economy still have many risk factors and uncertainties.
In addition, bank comments said that many business households do not register their businesses, so they are afraid to prove the purpose of using capital.
Even customers are worried that if the competent state agencies later determine that they have to withdraw the interest rate support amount, it will be difficult to handle because, at that time, this amount has been recorded as profit. Dividends are paid to shareholders, so even though they have received interest rate support, some customers have actively refunded the entire amount of interest-supported interest.
Therefore, based on the actual implementation, commercial banks have expected the amount of interest rate support in 2023 to be about VND 2,435 billion; however, according to Ms Giang, it is difficult to achieve this target.
However, the Standing Deputy Governor of the State Bank, Dao Minh Tu, said business difficulties would lead to banks. But conversely, banks also need to protect their health and ensure system safety. Therefore, it should be able to disburse any more Dong is good Dong, any more businesses is good business.
Therefore, the Deputy Governor suggested that banks should attach importance to credit work, focusing on credit work in the coming period, speeding up the implementation of the 2% interest rate support package. It is an important task and must continue to be carried out fiercely. Banks must be responsible from now until the end of the year, proactively approaching and guiding customers to complete the dossier of interest rate support according to regulations, not passively waiting for customers to arrive.
The representative of the State Bank of Vietnam also suggested that relevant ministries and branches continue to closely coordinate, promptly answer and remove problems arising in the process of policy implementation, timely arrange funding sources for support interest rates, support, and create favourable conditions for commercial banks in the process of making payments and finalizing the amount of interest support.
Previously, the State Bank of Vietnam issued many documents requesting the State Bank’s branches in provinces, cities and credit institutions to step up the implementation of the policy of supporting interest rates from the state budget for loans of enterprises and contracts, cooperatives, business households.
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However, because the effectiveness of policy implementation is not as high as today, many experts have recommended that the authorities shift their support to more practical areas, especially when resources for economic support have many restrictions.