Government credit programmes have helped both people and businesses cope with economic turbulence in the past. (Photo: VietnamPlus) Hanoi (VNA) – One of the main objectives of the support package launched under Resolution No. 43/2022/QH15, adopted by the NA in January last year, is to offer concessional loans to help businesses quickly rebuild the supply chain disrupted by the COVID-19 pandemic.
Government credit programmes have helped both people and businesses cope with economic turbulence in the past.
“Quenching capital thirst”
The State Bank of Vietnam (SBV) said the programme meets the objectives set by the banking sector in implementing support policies for businesses.
Credit institutions have restructured repayment terms while keeping the accumulated debt group at 709.03 trillion VND (30.12 billion USD) for more than 1 million clients. The total amount of interests waived, reduced, or lowered for the customers affected by the pandemic exceeded 50 trillion VND.
Nguyen Thanh Tung, Deputy General Director in charge of the Executive Board of Vietcombank, said the bank has signed many comprehensive cooperation agreements with major groups and corporations such as the Airports Cooperation of Vietnam, the Vietnam Oil and Gas Group, and Hateco Group, among others.
In the last two months of 2022, Vietcombank cut interest rates by 1% for loans in VND, he added.
Transactions at Vietnam Bank for Social Policies. (Photo: VietnamPlus) Similarly, VietinBank also launched a preferential credit package of 5 trillion VND with annual interest rates lower than the normal for businesses in the Mekong Delta by 2%.
This programme focuses on providing loans for import-export businesses in key sectors in the region like fisheries, rice, agriculture, animal feed, and forestry.
Most of the businesses shared the view that maintaining the debt group has helped customers adjust their repayment terms according to their business conditions during the pandemic, and access more loans to recover production and business post pandemic.
Do Van Ve, Chairman of the Business Association of the northern province of Thai Binh, said in the past, especially amid complex developments of COVID-19, the banking sector supported the business community with timely mechanisms and policies, helping them maintain production and business.
Notably, in context of layoffs and to help boost production recovery, the central bank introduced a refinancing loan scheme with a 0% interest rate and no collateral requirement for the Vietnam Bank for Social Policies (VBSP). Accordingly, employers can get loans once or multiple times to cover wages with a maximum duration of three months per worker.
At the end of the programme, the VBSP disbursed 4.78 trillion VND, fulfilling 63.8% of the target, benefiting 3,561 employers and over 1.18 million employees in the 63 cities and provinces.
Employers can get loans once or multiple times to cover wages with a maximum duration of three months per worker. (Photo: VietnamPlus) However, experts pointed out that the implementation of the preferential programmes remains sluggish due to cumbersome procedures, suggesting that relevant regulations should be adjusted.
Obstacles remain
Alongside the packages of exemptions, reductions, and extensions, the 2% interest rate subsidy programme has worked well for the business community. However, both businesses and banks have encountered various obstacles during the implementation.
Tran Ngoc Anh, Deputy Director of the Vietnam Bank for Agriculture and Rural Development (Agribank) in the central province of Quang Nam, said only one client of Agribank Quang Nam is qualified for the interest rate subsidy as the remainders, mainly household businesses, have yet to officially register their businesses.
There are also cases where customers are exporters, importers and FDI firms who are eligible for the interest rate subsidy, but are not included in the support group as they receive loans in USD.
The central bank reported that as of the end of November 2022, more than six months since the issuance of Decree No. 31/2022/ND-CP on the 2% interest rate support using the state budget (more than 40 trillion VND for 2022 and 2023), the new loan disbursement fell short at 30 trillion VND, with an outstanding balance of nearly 23 trillion VND.
Ha Thu Giang, Director General of the SBV Department of Credit for Economic Sectors, noted that enterprises are concerned over post-audit, inspection, and auditing procedures. Meanwhile, commercial banks have difficulty in determining eligible recipients.
To make use of the support package, the Ministry of Finance said it will soon coordinate with the SBV in further adjusting conditions to remove bottlenecks, enabling more businesses to access the preferential loans./.
