(PLO) – Although bad debts are at risk of increasing stronger, banks are still spending resources to support cutting loan interest rates for damaged customers with storm No.
Governor Bank The State Bank of Vietnam (SBV) Nguyen Thi Hong has just signed Instruction No. 04 asking credit institutions to urgently implement specific solutions, contributing to supporting people and businesses at its problems are due to the effects of digital storms.
In particular, the Governor of the State Bank instructed credit institutions to restructure debt repayment terms and to consider waiving and reducing loan interest rates for customers. At the same time, build new credit programs with appropriate favorable interest rates, continuing to provide new loans to customers to restore production and business after the storm according to current regulations.
Mr. Nguyen Duc Lenh, Deputy Director of the Ho Chi Minh City branch of the State Bank of Vietnam said: The most important thing of Instruction 04 is to identify and evaluate people’s problems, business affected by storm number 3 in good time.
Direct the immediate implementation of procedures policy available for units, especially credit institutions, to implement immediately, without waiting for new policies and the results of processing petitions. This is the most important thing, the difference and it will bring important results to support people and businesses to restore production faster.
Mr. Lenh said that current policy methods include the restructuring of debt repayment terms, exemptions and reductions in loan interest rates, and loans to businesses, business houses and cooperatives.
In particular, a reasonable exemption and reduction of loan interest rates not only supports businesses and people in difficulty and restores production and business, but is also a solution to meet capital needs in good time for international business development association in affected areas and cities, thus creating a spillover, recovery and new growth trend.
For areas and cities affected by storms and floods, production and business activity in the areas of agriculture, forestry and fishing is very large. Therefore, those who need support, especially farming families and people involved in agriculture, forestry and aquaculture, can fully implement the policies of Order 55. In particular, when local authorities declare losses due to natural disasters. epidemic diseaseable to apply methods of debt restructuring, maintaining the same debt group, debt freeze…
In addition, lending activities to policy subjects (through the Bank for Social Policies) and lending spendingwith favorable interest rates from consumer finance companies.
“At the same time, companies provide consumer loans finance Consumers coordinate with material businesses, businesses that provide consumer goods, transportation and daily life products, with unsecured loans and fast payment to serve people’s lives Storms are and floods affect people,” said Mr. Lenh.
Storm No. 3 causing damage to a series of businesses and people, which will also affect the banking industry because when the storm affects customers, it will lead to problems in repaying debts and not to meet new loan conditions.
Statistics from the State Bank show that the total debt of the credit institutions affected by storms and floods so far is about 116,000 billion VND, equivalent to about 1% of the outstanding debt whole system. This means that the bad debts of the banking industry will continue to increase while old bad debts have not been completely resolved.
However, until now, 32/40 banks are still registering new credit packages with a total amount of up to 405,000 billion VND, with interest rates reduced from 0.5-2%/year to support businesses and people on did storm no. 3.
