Credit institutions boost support for clients affected by COVID-19

Hanoi (VNA) – Credit institutions have so far supported more than 44,000 clients affected by the COVID-19 outbreak, and assistance will continue in the time ahead, heard a meeting between the State Bank of Vietnam (SBV) and those organisations in Hanoi on March 2.

Nguyen Quoc Hung, Director of the SBV’s Department of Credit for Economic Sectors, said credit organisations have assisted the affected clients whose outstanding loans total some 222 trillion VND (9.6 billion USD) through such measures as extending debt repayment deadlines, exempting or reducing loan interests, and cutting down fees.

He noted the epidemic’s impact has made many clients unable to repay their debts on schedule, thus raising the rate of overdue and non-performing loans.

Twenty-three credit institutions have reported to the SBV that about 926 trillion VND in outstanding loans have been affected by COVID-19, accounting for 14.27 percent of their total of this kind and 11.3 percent of the whole system’s figure.

Some sectors highly vulnerable to the outbreak include agriculture, forestry, fisheries, export, import, accommodation and food services, transportation, textile-garment, footwear, electronics, oil and gas, tourism, and education, Hung said.

Nearly 30 commercial banks have coordinated with the National Payment Corporation of Vietnam to exempt and reduce money transfer fees. Besides, the SBV’s National Credit Information Centre has also decreased information service charges to help credit organisations cut down costs and interest rates, according to the official.

At the meeting, participating institutions also pointed out some difficulties in providing support for clients of this group and suggested measures for increasing assistance.

Applauding their activeness, SBV Deputy Governor Dao Minh Tu asked credit organisations to press on with the work.

Tu said the central bank is working with relevant agencies to swiftly perfect the legal system to facilitate both credit organisations and businesses in dealing with damage caused by COVID-19.

He added the banking sector is one of those taking the lead in carrying out drastic solutions to help clients influenced by the disease, and its actions have been highly valued by the Government, businesses and people./.