Vietnamese banks provide support aids to businesses

According to the State Bank of Vietnam (SBV)’s deputy governor Dao Minh Tu, the banking industry should support businesses amid the complex development of COVID-19. .
April 02, 2020 | 08:07
vietnamese banks provide aids to businesses EUFTA facilitates European investors' capital to enter Vietnamese banks
vietnamese banks provide aids to businesses Vietnam's banks more open for EU investors under newly-approved trade pact
vietnamese banks provide aids to businesses Vietnam launches one of world’s first online drug banks
vietnamese banks provide aids to businesses
VietinBank receives support requests from about 115 customers affected by COVID-19. (Photo source: VNA)

Incomplete statistics show that businesses have enjoyed cuts of at least VND100 trillion (US$4.25 billion) to support them amid the COVID-19 pandemic.

The State Bank of Vietnam (SBV)’s deputy governor Dao Minh Tu said amid the complex situation of COVID-19, the banking industry should implement measures to support enterprises.

These include debt restructuring, debt postponement and extension, as well as interest rate reductions on old and new loans.

The deputy governor emphasised that commercial banks aim to cut lending rates for businesses and households affected by the disease by about 2 per cent compared to before the pandemic occurred.

The economy and credit institutions are forecasted to face many difficulties this year, so the deputy governor said commercial banks needed to cut operational costs and deposit rates.

The banks should also develop business, profit plans and salary policies, he noted.

Chairman of the board of directors of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Phan Duc Tu said the bank had about VND155 trillion of debt and had conducted debt restructuring and extension for about 3,300 customers so far.

Nguyen Dinh Vinh, deputy general director of Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), said that the bank received support requests from about 115 customers affected by COVID-19 with debts of nearly VND16 trillion.

Economic experts said the monetary policies the banking industry was implementing to support businesses was a positive step.

Economist Nguyen Tri Hieu said recent SBV policies were very quick and timely but still not enough.

Interest rate lowering was not enough to bring the economy through the crisis, the reduction only affects the market, while the problem of the economy was not only in the monetary economy but also the commodity economy. The commodity market was stagnant, he noted.

“I think that monetary policy measures are only supportive measures, which require the support of fiscal policy through support packages to help businesses severely affected by COVID-19 to have the liquidity to pay for partners, pay salaries and pay interest," Hieu said.

vietnamese banks provide aids to businesses US announces $174mln foreign aid including $3mln to Vietnam for COVID-19 battle

The United State would aid US$174 million financial assistance to 64 countries including USD3 million to Vietnam to help the fight against coronavirus pandemic, its ...

vietnamese banks provide aids to businesses Japan pledges to provide at least ¥200 million to aid Vietnam's fight against COVID-19

Japan pledged to provide at least ¥200 million in aid to help Vietnam fight the novel coronavirus (COVID-19) pandemic, Japanese Foreign Minister Motegi Toshimitsu said.

vietnamese banks provide aids to businesses Ha Giang province receives aid from GNI to fight COVID-19

Based on the proposal of the Ha Giang Department of Foreign Affairs, Good Neighbors International (GNI) in Vietnam on March 30 donated VND 200 million ...

VNA