Commercial banks support COVID-19-hit businesses

Hanoi (VNA) – The State Bank of Vietnam (SBV)’s leaders on March 24 held an online meeting with representatives of 12 joint stock commercial banks on the implementation of measures to support businesses and people affected by the coronavirus disease (COVID-19).

SBV Deputy Governor Dao Minh Tu said the central bank has instructed commercial banks to delay, extend, and reschedule debt payments as well as reduce interest rates and fees for businesses, while providing new loans to help them overcome difficulties.

Besides, the State Bank has adjusted interest rates to support credit institutions with easier captial access.

On March 13, 2020, the SBV Governor issued Circular No. 01/2020/TT-NHNN directing credit institutions and foreign bank branches to restructure their repayment periods, waive and reduce interest rates and fees, and maintain debt classifications in order to support customers affected by the Covid-19 pandemic (Circular 01).

To implement the circular, banks are required to develop scenarios based on their activities, Tu said, adding that they should assess losses of businesses and customers at present and in the short and medium terms, then report to the SBV’s relevant units for prompt support./.