Loan interest support to be provided for all struggling enterprises in Vietnam? State Bank of Vietnam asked to strengthen credit work and implement debt restructuring policy?
State Bank of Vietnam asked to strengthen credit work and implement debt restructuring policy?
On May 23, 2023, the State Bank of Vietnam (SBV) issued Directive No. 02/CT-NHNN on strengthening credit work and implementing the policy of restructuring loan repayment terms and keeping the same debt group to support customers in difficulty as prescribed in Circular No. 02/2023/TT-NHNN dated April 23, 2023.
The document also mentions the current economic situation as follows:
Over the past time, the world situation continues to be complicated; difficulties and challenges increase, global production, business, investment and consumption activities slow down; Low growth coupled with the risk of recession in some economies has had a significant impact on the socio-economic development of a country with a large economic openness like Vietnam.
According to that, the economic growth in Vietnam in the first quarter was only 3.32%, almost the lowest compared to the same period since 2011 due to the decline in world demand and weak increase in domestic demand.
People and enterprises face difficulties in production and business activities, lack of orders, and output markets, leading to a decrease in revenue and income, affecting the ability to repay loans at credit institutions, foreign bank branches.
In order to achieve the goals set out at the beginning of the year and effectively implement Circular No. 02/2023/TT-NHNN, the Governor of the SBV requires the units of the State Bank of Vietnam, credit institutions and cooperative organizations to Associations in the industry urgently and drastically perform well the tasks set out in Directive No. 02/CT-NHNN in 2023, in which:
Requesting units of the State Bank of Vietnam and credit institutions to make efforts to achieve the objectives set out in Directive No. 01/CT-NHNN dated January 17, 2023 of the Governor of the State Bank of Vietnam;
At the same time, focus on implementing solutions to control inflation, maintain stability in the currency and foreign exchange markets, and stabilize the macro-economy; focus credit on priority areas, production and business sectors and growth drivers in order to promptly meet the capital needs of people and enterprises, contributing to the recovery and development of production and business.
Continue to reform administrative procedures, increase access to credit capital, cut costs to further reduce loan interest rates.
Actively implement the policy of restructuring the repayment term and keeping the debt group unchanged according to Circular No. 02/2023/TT-NHNN in a synchronous and consistent manner from the central to local levels, from the SBV to credit institutions, and from the Association. head office to branches, transaction offices of credit institutions; The implementation process ensures close and timely coordination between the State Bank of Vietnam, credit institutions and the unanimity and coordination of borrowers to improve the effectiveness of policy implementation.
Ensure compliance with current legal regulations on lending activities of credit institutions to customers, regulations on rescheduling repayment and maintaining debt groups according to Circular No. 02/2023/TT-NHNN of the State Bank of Vietnam and other relevant laws. Ensure credit quality, ensure objectivity and true nature of bad debts.
Loan interest support to be provided for all struggling enterprises in Vietnam? State Bank of Vietnam asked to strengthen credit work and implement debt restructuring policy?
Will interest rates continue to decrease in the near future?
According to Directive No. 02/CT-NHNN in 2023, the Governor of the State Bank of Vietnam requires credit institutions to continue to reduce costs to reduce loan interest rates and reduce fees to support enterprises and people to recover and develop production and business.
At the same time, it is required that the associations in the bank continue to promote the role of connecting credit institutions, creating consensus and unity among member credit institutions in the implementation of credit programs, policies and solutions to remove difficulties for people and enterprises in accessing credit capital to restore and develop production and business, contributing to economic development.
Mobilize credit institutions to reduce loan interest rates and share profits with customers' difficulties.
Loan interest support to be provided for all struggling enterprises in Vietnam?
This is one of the key tasks stated in Directive No. 02/CT-NHNN in 2023, requiring the State Bank's units to continue to advise and effectively implement solutions to manage monetary, credit, and interest rate policies... according to the tasks assigned in Directive No. 01/CT-NHNN dated January 17, 2023 by the Governor of the SBV on organizing the implementation of key tasks of the banking industry in 2023.
Notably, the Governor directed units under the State Bank to continue coordinating with ministries, branches, localities, industry associations, and enterprises to continue promoting the implementation of the Bank-enterprise connection program. thematic credit conferences; continue to advise and promote the implementation of tasks of the banking sector in the program of socio-economic recovery and development, including the policy of supporting 2% interest rate for enterprises, cooperatives, households. (The Department of Credit for key economic sectors in coordination with relevant units to implement).
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