(HBO) – Amidst the sluggish economic recovery, the banking sector and credit institutions have made great efforts in removing difficulties while creating momentum for economic growth through the implementation of effective monetary policies.
Over the past time, the banking sector has introduced preferential credit programmes to prioritised customers.
Since March 2023, the State Bank of Vietnam (SBV) has reduced operating interest rates three times to help remove difficulties for the economy.
Accordingly, banks and credit institutions in the northern mountainous province of Hoa Binh have followed instructions for maximum loan interest rates with five prioritised areas and interest rate reduction from 1.5%- 2% per year in the remaining months of 2023. At the end of July 2023, the average deposit and loan interest rates of commercial banks contracted about 2% compared to that at the end of 2022.
Commercial banks have made efforts in implementing credit policies, programmes, helping enterprises and people who have been facing difficulties under the instruction of the Government and the SBV.
Under the Government’s Decree No.31/2022/NĐ-CP on the interest rate support package from the state budget applicable to loan of enterprises, cooperatives and household businesses as well as several customers have enjoyed preferential interest rates.
The provincial bank for social policies has disbursed 301.8 billion VND (12.5 million USD) under loan policies according to Resolution No. 11/NQ-CP, of which loans to support job creation reached 150 billion VND for 2,992 customers; 126.7 billion VND for social housing; and 15.8 billion VND for the National Target Programme for socio-economic development in ethnic minority and mountainous areas.
As of the end of August 2023, commercial banks such as Agribank, BIDV, Vietinbank, VPbank had restructured debt for 17 customers, including 11 business and six individual clients, debts prioritised for restructuring in the fields of construction, real estate, production, business and services, among others.
Ngo Quang Loi, acting director of the provincial SBV branch, acknowledged that over the past time, it has managed monetary policy proactively, flexibly, and harmoniously coordinated with fiscal policy and other policies to maintain macroeconomic stability, promote growth, and ensure economic growth.
Implementing the function of state management of currency and banking operations in the province, the provincial branch has promptly implemented guidelines and policies, and instructed banks and credit institutions to comply with regulations on interest rates and credit granting while urging the effective implementation of key credit programmes to remove difficulties and support the economy's recovery and development.
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