Credit growth reaches 1.32pct by mid-May

23-May-2020 Intellasia | Vietnam Finance | 6:02 AM Print This Post

In the morning of May 20, at the opening session of the 9th Session, the 14th National Assembly, prime minister Nguyen Xuan Phuc reported on behalf of the government to the National Assembly about the prevention of Covid-19 pandemic and key solutions to recover and develop the socio-economy.

The prime minister assessed monetary policy to be operated proactively and flexibly, ensuring the stable exchange rate and foreign currency market. Regulating rates decreased by 1.5%; maintaining the strong liquidity of the credit institution system and the economy.

In addition, the banking industry has focused on credit for production, business and priority areas. At the same time, banks have timely implemented the policy of rescheduling loan repayment, exemption and reduction of interest expenses, keeping the debt group, supporting customers affected by the Covid-19 pandemic.

According to the government’s report to the National Assembly, as of May 15, 2020, the credit increased by 1.32 percent compared to the end of the previous year and increased by 10.02 percent compared to the same period in 2019. prime minister stressed that in the near future, the government would continue to ensure timely provision of credit, further reducing lending rates, restructuring debts, reducing loan interests and borrowing costs.

Along with that, the authority will continue to effectively carry out the restructuring of credit institutions associated with credit quality control, share appropriate benefits between banks and businesses for mutual development.

Earlier, at the conference to carry out customer support solutions affected by the Covid-19 pandemic on May 14, Nguyen Quoc Hung, director of the Credit Department of the State Bank of Vietnam (SBV), said until mid-May, credit growth was 1.2%, lower than the level of 1.42 percent at the end of April, showing that the credit balance of the whole industry decreased.

The leader of SBV said that the credit growth in the first months of the year was much lower than the same period in 2019 because businesses stepped up repayment while the demand for new capital was low. In addition, some businesses are in need of capital but banks can not lend to because they do not guarantee the ability to recover capital.

With regard to the loan without collaterals, the director of Credit Department shared that the banking sector could do that, but provided that the cash flow was controlled. The prerequisite was that businesses could demonstrate effective business plan. Banks did not lack capital, just required the good business plans.

It is estimated that banks have restructured the repayment term for over 215,000 customers with outstanding loans of 130 trillion dong, exempted and reduced interest rates for 260,000 customers with outstanding loans of 1.08 quadrillion dong. Accumulated from January 23 up to now, outstanding loans of 630 trillion dong have been disbursed to 182,000 customers with common interest rates 0.5-2.5 percent lower than the previous period.

 

Category: Finance, Vietnam

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