The enterprises have waited for the preferential loan packages

​Cash counting at a commercial bank in Bien Hoa City. 

According to a representative of the State Bank of Vietnam in Dong Nai Branch, the Circular No. 14 has supplemented some more open regulations compared to the previous Circular No. 01 and Circular No. 03 in order to provide more support for individual and enterprise customers. Especially, extending the debt restructuring period to the end of June 2022 will help many enterprises affected by the Covid-19 epidemic reduce the financial pressure, thereby having more opportunities to restore the production and business.

The Circular No. 14 with some adjusted and supplemented regulations has many new points compared to the previous Circulars, encouraging the banks to promote plans to support the people and enterprises in difficulty. However, the most important problem is still how this Circular is implemented in practice.

The banks will need to have the appropriate support plans in terms of interest rates, simplify the procedures as much as possible, and increase the accessibility for the credit support plans in the Circular No. 14 to be effective. Especially, many enterprises are really struggling because of the epidemic, so they need the timely help and "lifebuoys" in the current period.

With this new Circular, many enterprises (companies) affected by the Covid-19 epidemic have been looking forward to soon accessing the credit support programs and reducing loan interest rates from banks and credit institutions, etc.

Mr. N.D.H., the owner of a transportation enterprises in Bien Hoa City, said that the company has currently received a notice from the bank about the reduction of interest rates and credit support in the face of difficulties from the epidemic. However, with the current "trickle" reduction in the interest rates of about 0.3 - 0.5% per year, it is not as expected of the enterprises. This reduction rate does not correspond to the levels of difficulties and damages that enterprises are facing with the impact of the epidemic, the "moderate" and interrupted business activities. The company hopes that the bank will have a plan to further reduce interest rates so that the enterprises can reduce the financial pressure and debt repayment pressure during this period.

Mr. Chau Minh Nguyen, Vice Chairman of the Dong Nai Business Association shared that, the Circular No. 14 in terms of policy is reasonable and necessary in the current period when the Covid-19 epidemic situation has still complicated and the production and business situations of many enterprises have faced difficulties. This Circular has many new points than the previous Circulars, but in order for the enterprises to access this preferential loans, they still have to wait for the commercial banks to implement the debt restructuring plans, reduce loan interest, etc.

The debts that need to be rescheduled for repayment will be assessed by the credit institutions and bank branches as being unable to repay the loan principal and/or interest on time according to the contracts, agreements because of the decreased revenue and income due to the impact of the Covid-19 epidemic.

Mr. Nguyen emphasized that, in fact, it is not easy for many enterprises in this period to prove their financial capacity, to prove the impact of the epidemic on revenue and income, etc. Moreover, many enterprises are still struggling due to the pandemic, so it is difficult to prove and meet the conditions and criteria for loan support. 

                                                                                            Phan Anh