Financial Support for COVID-19 impacted businesses

​Launching more Support Programs

The provincial Banking sector launches many credit programs and packages to support clients and businesses impacted by COVID-19.

During the past time, provincial credit institutions focused their capital flows on production activities, including credit packages, plans to support businesses and customers affected by COVID-19, especially businesses and unions in the fields of agriculture, transportation, warehousing, accommodation and catering services, education - training, import and export, textiles, footwear, etc.

According to the State Bank of Vietnam (SBV) - Dong Nai branch, credit institutions have rescheduled its debt payment terms; exemption, reduction and reduction of interest rates for customers. In addition, provincial commercial banks also provide new loans at preferential interest rates with accumulative sales in the first half of 2020 reaching nearly VND 50 trillion to more than 15.5 thousand customers. The lending interest rate is adjusted to be 0.5-2.5%/year lower than the pre-Covid-19 period.

Mr. Nguyen Huy Trinh, Director of the Vietnam Bank for Agriculture and Rural Development (Agribank) - Dong Nai Branch said that this branch has directed the whole system to review and evaluate the impact of COVID-19 on customers in order to promptly grasp information and have support plans. Agribank Dong Nai has reduced the new lending interest rate up to 0.8% per year for short-term loans; Continuing to provide preferential interest rate loans to customers who fully meet the conditions and have feasible business plans. Agribank Dong Nai also implements the debt rescheduling; loan interest exemption and reduction; keeping the debt group according to the State Bank's policy.

In addition, Agribank Dong Nai also provides a VND 100,000 billion loan package with preferential interest rates to support customers impacted by COVID-19 pandemic to help customers to resume production and stabilize business activities. By the end of July, there were 43 customers participating in the program, the total outstanding loan disbursement for new loan interest rate support reached nearly 514 billion.

According to Mr. Vu Duc Quang, Director of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) - Bien Hoa branch, since the end of March, BIDV Bien Hoa branch has promoted the effective implementation of solutions for customers affected by the epidemic such as: rescheduling of repayment term upon customers request, exemption or reduction of interest on old debts, keeping the debt group in accordance with Circular 01/2020/TT-NHNN of the State Bank of Vietnam and new loans with preferential interest rates, etc. Small and medium enterprises and enterprises operating in export sector are most supported customers.

BIDV Bien Hoa branch has implemented the cutting lending interest rates from 0.5-1% per annum depending on the loan term for businesses affected by Covid-19 that have all relevant documents, etc. At the same time, this bank disbursed new loans to more than 600 customers with a total outstanding balance of about 1.1 trillion dong under the preferential credit package, a support package for customers affected by Covid- 19.

Bank-business connection program

In fact, in the process of implementing customer support packages and businesses affected by Covid-19, there are still many difficulties and shortcomings affecting the performance of credit institutions. In which, many customers do not have sufficient documents to prove their difficulties due to the decline in revenue and income on year-over-year basis.

Vice Chairman of Business Association in Dong Nai Chau Minh Nguyen shared that the biggest difficulty was finding a common voice between the bank and businesses about loan conditions and procedures, especially when businesses are affected by epidemics, it is even more difficult to meet loan requirements and procedures than in the past.

Deputy Director of SBV - Dong Nai Branch Pham Quoc Bao said that this unit will actively grasp the situation, request credit institutions in the area to review and re-evaluate the entire list of customers meeting all conditions to restructure the repayment period, waive or reduce of interest and fees; reduce interest rates in accordance with regulations; create favorable conditions for customers to easily access loans to resume production and business activities such as: notify customers by email, instruct customers to provide sufficient documents to prove the decrease in revenue and income affected by COVID-19.

Credit institutions in the province must actively save operating costs to share common difficulties with customers; adjust financial plan to suit the evolution of the operation situation as well as the evolution of the epidemic context.

Vice Chairman of the Provincial People's Committee Nguyen Quoc Hung requests that in the coming time, SBV - Dong Nai branch needs to regularly grasp the situation of the difficulties that credit institutions, businesses, customers are facing due to Covid-19 impact in order to soon have a plan to advise the State Bank and local authorities on appropriate solutions; At the same time, the State Bank of Dong Nai branch needs to actively connect with relevant departments, strengthen connection activities between credit institutions and businesses to promptly handle difficulties and problems in credit activities...

Phan Anh