Connecting banks with Dak Lak’s enterprises facing difficulties due to Covid-19: 9,331 customers entitled to the reduction and exemption of interest (13/07/2020, 14:51)

On Monday  afternoon (June 29), the State Bank of Vietnam (SBV) in collaboration with the Dak Lak Provincial People’s Committee held a Bank – Enterprise Connection Conference in the Dak Lak’s city of Buon Ma Thuot in order to support customers facing difficulties amid Covid-19. The Conference was attended by Deputy Governor Nguyen Thi Hong of the SBV, Standing Deputy Chairman Nguyen Tuan Ha of the Dak Lak Provincial People’s Committee together with representatives from the Banks, the Provincial Entrepreneur Association and 50 enterprises in the province.

Chairperson of the Conference

Up to present, the total of mobilized capital of the bank system reached VND49,000 billion, an increase of 3.96% from the beginning of the year; the debt balance was estimated to reach VND100,500 billion.

In addition, credit institutions (CIs) have proactively reviewed, evaluated and forecast the value of damage of the borrowers to have support solutions to their difficulties, such as restructuring the repayment periods, reducing and waiving the interest, maintaining the debt classifications without an increase of rate including deposit interest rates.

Besides, the CIs have restructured the repayment periods and maintained the debt classifications for 2,097 customers affected by the Covid-19 pandemic with a total amount of debt balance was VND1,104 billion. In which, 917 borrowers have not changed to bad debt with an amount of debt balance of VND336 billion; 9,331 borrowers have been entitled to the reduction and exemption of interest with an amount of debt balance of VND6,841 billion. On the other hand, those CIs have issued new credit packages with a low interest rate for 15,568 customers with a loan sales reaching VND9,557 billion.

Deputy Governor Nguyen Thi Hong of the SBV speaks at the Conference

From the beginning of 2020, the production and business of people and enterprises in Dak Lak have faced many difficulties due to the Covid-19 impacts, affecting to the operation of the bank system. The total amount of mobilized capital in the province have seen an increase lower than the same period last year and in comparison with the national mobilized capital. Additionally, the outstanding credit balance have decreased, in which, the balance in agricultural sector saw a decrease of 1.65%, the balance on planting industrial crops as a strength of the province and processing the industrial crop-based products have plummeted (7.8% for coffee, 20.2% for black pepper, 21.22% for rubber, etc.).

Standing Deputy Chairman Nguyen Tuan Ha of the Dak Lak PPC speaks at the Conference

Facing to the impact of Covid-19 pandemic, the SBV have early and promptly issued Circular No. 01, taking effect on March 13th with a very strong mechanism, creating a legal basis for the CIs to overcome difficulties on loans to customers.

By June 22nd, 2020, all credit institutions, including financial companies and foreign banks, have restructured the debt repayment period for over 258 thousand customers with outstanding loans of nearly VND 177 trillion, waived and reduced interest and rates for over 421 thousand customers with outstanding loans surpassing VND1.26 quadrillion; given 238 thousand customers loans with preferential interest rates of VND 1.13 quadrillion with cumulative sales from January 23rd to now; the interest rate is commonly lower than 0.5% - 2.5% compared to the period before the pandemic.

Particularly, the VBSP has extended repayment periods to nearly 154 thousand customers with more than VND3,875 billion of debt balance, adjusted repayment term for more than 75 thousand customers with nearly 1,600 billion of debt balance, made over one million customers new loans of nearly VND 39 trillion.  

Mr. Duong Thanh Tuong – Chairman of the Provincial Entrepreneur Association proposes some solutions to the difficulties for Dak Lak’s enterprises

For the difficulties of enterprises, Standing Deputy Chairman Nguyen Tuan Ha of the Dak Lak PPC suggested that the SBV’s office of Dak Lak and CIs should implement effectively and practically support solutions as restructuring repayment period, waiving and reducing the interest and rates, maintaining debt classification while offering customers new loans to help them stabilize the production and business in order to recover the production after the pandemic early.

The PPC’s Standing Deputy Chairman also asked to supervise and control the CIs in publicize the information, procedures as well as appraisal periods for loans, collaborate with the Provincial Entrepreneur Association to accurately forecast the demand for loan as well as difficulties of enterprises during accessing the loan to have a timely and effective solution.


Delegates attend the Conference

 With the message to accompany the enterprises, Standing Deputy Chairman Nguyen Tuan Ha also expressed his determination to continue to find solutions to the difficulties with capital of businesses and identify the epidemic situation to advise the Ministries and Central branches.
According to Mr. Nguyen Tuan Ha, Dak Lak province will meet external businesses to call for resources together with the bank system’s determination to maintain the local economic growth. He proposed that the State Bank should consider extending the support period of Circular No. 01, joining hands to solve problems of enterprises associated with local practices such as: Declaration of damage to tangible assets, loan mechanism for tourism, electricity, trade and service businesses who have contributed greatly to the economic structure of the province ...

Concluding the Conference, Deputy Governor Nguyen Thi Hong acknowledged and responded to the opinions of Dak Lak enterprise. At the same time, she directed the SBV's office in Dak Lak and the CIs should regularly meet and advise enterprises and customers in order to grasp the situation and promptly solve difficulties.

In addition, she asked to have no shortage of investment capital for production and business, especially in agricultural production, the strength of Dak Lak province. The SBV's office in Dak Lak and the CIs should also proactively review loans, thereby implementing support policies in a public and transparent manner.

She said that the SBV received recommendations from the leaders of Dak Lak province and the enterprise. For recommendations beyond the resolution, the SBV would summarize the report and propose to the Government in order to create the most favorable conditions and remove difficulties for enterprises in borrow capital for the production and business.

In addition, Deputy Governor Nguyen Thi Hong emphasized that in the coming time, the SBV would continue to control the monetary policy, interest and exchange rates in an active, flexible and appropriate manner while creating conditions for the CIs to stabilize and reduce rates, support enterprises to recover production and business activities.
Also, the CIs should drastically implement solutions to restructure the debt repayment period, waive and reduce interest and fees according to Circular No. 01 of the SBV, promote new loans for people and businesses; thoroughly reduce costs and profits for further reducing interest rates and sharing with borrowers. On the other hand, the CIs should simplify internal procedures and processes, creating favorable conditions for customers to access new support and loan policies but not easing credit conditions to ensure credit safety and quality, and maintain healthy operations of the banking system.


Leader of the provincial Young Entrepreneurs Association proposes solutions to support capital for small and medium-sized enterprises

On this occasion, the Conference also spent much time listening to banks’ discussions, exchanging information with customers and enterprises the implementation of supporting policies and solutions, the reduction of procedures and benefit sharing to help customers recover production after the Covid-19 epidemic, etc...

Kim Bao