Over the weekend, the State Bank of Vietnam (SBV) requested credit institutions to minimize expenses, calculate loan interest rate reductions, structure loan repayment terms and publicize support policies for borrowers. people and businesses (DN) affected by the current outbreak.
Hope to relieve the burden
A credit officer at a large-scale commercial bank said that since the Covid-19 epidemic returned at the end of May in Ho Chi Minh City until now, many businesses have contacted to ask about support policies, loan interest exemption and reduction. However, the branch has to wait for the general policy from the head office, but dare not make the decision to support any customer on its own.
In fact, today, the demand for loan interest reduction, debt restructuring or transaction fee exemption and reduction of individual customers and businesses is very large in the context of the complicated development of the Covid-19 epidemic, greatly affecting the products and services. business. For example, tourism is one of the industries directly and heavily affected by the Covid-19 epidemic.
“Summer is the longest major tourist season of the year, but now there is no hope. To maintain our operations until the end of the epidemic, we are borrowing at a commercial bank in Ho Chi Minh City with interest at 9.5 %/year to get working capital, I have just contacted the bank to see if I can further reduce the interest rate to reduce financial costs but have not yet been answered by the bank,” said the director of a travel company in Ho Chi Minh City.
The State Bank requires credit institutions not to let the delay in agricultural product consumption happen due to the inability to access capital Photo: AN NA
The director of a business in the field of producing masks and medical protective equipment said that he had just been disbursed 50 billion dong of working capital, with an interest rate of 8.5%/year at a small-scale joint stock bank, but he was still skeptical. hope to further reduce interest rates to reduce input costs.
One of the difficulties faced by production and business enterprises today is the high input costs, but they do not dare to increase the selling price because of weak purchasing power because people tighten spending in the context of the epidemic. Many businesses said that they are operating without interest, so reducing interest rates or structuring the repayment term even if it is small, helps them reduce their burden.
Mr. Truong Chi Thien, General Director of Vinh Thanh Dat Company, said that industries such as livestock and poultry farming are under great pressure due to the price of animal feed increasing by 20%-30%; Transportation costs also increased, while output was strongly affected, making businesses not dare to increase selling prices. “The current interest rate in my opinion is reasonable. However, in the difficult period due to the current Covid-19 epidemic, banks should have short-term support programs to share difficulties with businesses. Working capital in the short term to maintain production and business activities at this time is very necessary for businesses,” – Mr. Thien suggested.
Reduce costs to further lower loan interest
Talking to a reporter from Nguoi Lao Dong Newspaper, Mr. Le Duc Tho, Chairman of the Board of Directors of Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), said that the policy of reducing lending interest rates to support businesses, customers and the economy was implemented by VietinBank. has been present throughout the past time, with many preferential credit packages for each target group. Thanks to that, credit growth in 5 months at VietinBank reached about 4%.
Mr. Le Duc Tho said that the interest rate level at VietinBank is among the lowest in the market, but at the request of the State Bank of Vietnam, VietinBank will continue to implement solutions to increase the efficiency of operational and expenditure management. fees and quality to have more room to reduce lending interest rates. Specifically, the bank is promoting the development of capital mobilization channels, payment channels, and free transactions to attract idle money… From there, it has cheaper input capital, contributing to reducing lending interest rates. .
However, economic expert, Dr. Can Van Luc, said that interest rates are not a bottleneck at the moment because the ground is quite low. The problem is that credit demand is still low in the context that businesses continue to face difficulties and impacts due to the epidemic. Meanwhile, credit institutions must control lending to risky areas, potentially increasing bad debts. “If the interest rate is reduced, the money supply will be pumped out a lot, which can create inflationary pressure, while the borrower can borrow money to invest in risky areas with potential for bad debt. There is room to reduce interest rates for investors. loans are not much in the context that some banks have adjusted to increase input interest rates recently and liquidity is not as abundant as last year. Therefore, keeping the lending interest rate level stable in the coming time is also a success.” – Dr. Can Van Luc said.
In this context, according to Dr. Can Van Luc, an important factor is that both credit institutions and borrowers need to discuss in order to restructure their debts accordingly, restructure production and business activities. businesses and develop a viable business plan to contribute to the recovery as soon as possible.
At the request of the State Bank, commercial banks need to continue to restructure the repayment term, exempt and reduce interest, fees, new loans… according to their competence and regulations; closely inspect and supervise the implementation of support policies to remove difficulties for businesses and people who have not been able to repay debts due to the epidemic.
Commercial banks cut costs to create financial resources to support customers. Each credit institution shall base itself on its financial capacity and capability to calculate loan interest rate reduction, debt repayment term restructuring and other support measures. To prevent slow consumption of agricultural products, interruption of production and supply chains due to inability to access credit… Notably, banks need to announce support interest rates, measures and policies. Support books for people and businesses to know.