The banking has been deploying many preferential capital sources for enterprises to recover production and business after social distancing and boost production and business in the last months of the year.
The banking has been deploying many preferential capital sources for enterprises to recover production and business after social distancing and boost production and business in the last months of the year.
Deploying many new capital flows
According to Tu Tien Phat - Deputy General Director of Asia Commercial Bank (ACB), the bank is offering preferential loans to help customers recover production and business after a difficult time. Since the beginning of October, the bank has spent a capital of 10,000 billion VND with preferential interest rates from 5%/year for enterprises and from 6%/year for business households. Loan packages have appropriate repayment methods and cycles to help customers best adapt to the current business situation.
According to a report by the State Bank of Vietnam (SBV) - Khanh Hoa Branch, many banks in the province have implemented new credit packages with short-term lending interest rates ranging from 5.3% to 9.5%/year, medium and long term from 8.3% - 11%/year. This is a practical activity of the banking to support customers to maintain and restore production and business, overcoming difficulties caused by the Covid-19 epidemic.
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Reducing interest rates for old loans
Nguyen Hoai Chieu - Director of the State Bank - Khanh Hoa Branch said that recently, the branch has issued Plan No. 819 on supporting businesses, cooperatives and business households in the province in the context of the Covid-19 epidemic. Accordingly, the branch proposed solutions and requested branches of credit institutions in the province to continue strongly implementing solutions to remove difficulties and support borrowers affected by the pandemic, including: restructuring the repayment term, exempting and reducing loan interest and fees, maintaining the same debt group, making new loans, etc., according to the competence and regulations in the guiding documents of the Governor of the State Bank; and cut costs in order to create financial resources to support customers, people and businesses.
Responding to the call of the State Bank, many branches of credit institutions in the province have cut operating costs to actively implement many reductions in lending interest rates for old loans. However, the reduction of lending interest rates depend on input interest rates, and credit institutions need to balance to ensure system safety. The interest rate for short-term loans in VND for 5 priority areas is still 4.5%/year. As of September 30, branches of credit institutions in the province have reduced interest rates on old loans for 18,618 borrowers with outstanding loans of 41,557 billion VND. The reduced interest has been VND 210.41 billion VND.
Mai Hoang
Translated by T.T
