In the first quarter, the lending of the banking in Khanh Hoa is estimated to decrease by 36.02% over the same period last year; credit balance is estimated to decrease by 1.58% compared to the beginning of the year, showing that a decrease in capital absorption of the market, especially enterprises.
Lending of the banking in Khanh Hoa in the first quarter of 2020 is estimated to decrease by 36.02% compared to the same period last year; credit balance is estimated to decrease by 1.58% over the beginning of the year, showing that a decrease in capital absorption of the market, especially enterprises. Currently, the banking is carrying out solutions to encourage the ability of enterprises to absorb capital.
According to the report of the State Bank (SBV) - Khanh Hoa Branch, by the end of March 2020, the capital mobilization of the whole province is estimated at VND85,355 billion, falling by VND571 billion with 0.66% compared to the beginning of the year. Credit balance is estimated at VND88,680 billion, down by VND1,425 billion with 1.58% compared to the beginning of the year. In the first 3 months, lending is estimated at VND23,843 billion, down by 36.02% year-on-year. This shows that the ability to absorb capital of the market, especially of enterprises, has decreased. In the situation of difficult production and business, many businesses have narrowed their scale and restricted borrowing. This goes against the trend in previous years when credit often grew right from the first months of the year. The main reason is due to the effects of Covid-19 epidemic, which delayed production and business activities in many fields, especially tourism, service, transportation, import, export, etc.
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In the current situation, the banking sector has implemented solutions to remove difficulties, support production and business activities, and encourage the capital absorption of enterprises.
Recently, the State Bank of Vietnam has reduced operating interest rates with the aim to remove difficulties for production and business, which has created favorable conditions for credit institutions to reduce lending rates and support customers damaged by the Covid-19 epidemic.
In addition, the banking has actively checked and captured the situation of customers affected by the Covid-19 epidemic to implement solutions to support and remove difficulties for them. As of March 15, the whole province had 749 borrowers (247 enterprises and 502 individuals) affected by Covid-19 epidemic, whose credit balance were nearly VND9,933 billion, accounting for 11.15% of the total credit balance.
Credit institutions in the province have prepared and verified cases to suggest their head offices restructuring debts or keeping the debt groups for 19 customers with loans of over VND201 billion, giving new loans to 16 customers with an amount of nearly VND15 billion. Beside this, many branches of credit institutions in the province have actively reduced lending interest rates for old loans: reducing VND lending interest rates to under 1%/year - 3%/year, reducing USD interest rates to 0.5%/year. Credit institutions have reduced lending rates to a maximum of 11%/year for 1,180 customers with credit balance of nearly VND2,778 billion. Currently, loans with interest rates of 11% or less account for 73.08%; those from 9%/year and below account for 37.31%; 6% or less account for 9.10% of total outstanding loans.
According to Mr. Nguyen Hoai Chieu - Director of Khanh Hoa Branch, in the coming time, the banking sector will continue to promptly implement the guidelines and policies of the Party, the State, the direction of the Government and the Governor of the State Bank on currency, credit, banking activities, policies to support local socio-economic development; actively deploying solutions to support people and businesses with loans affected by Covid-19 epidemic to overcome difficulties, stabilize production and business. Besides, the banking will allocate capital to develop lending products to serve the life, implement measures to remove difficulties as prescribed for customers who are in difficulty and unable to pay their debts on time, help customers access favorable credit, contributing to limiting "black credit".
N.D
Translated by T.T
