The State Bank considers indirect support to reduce interest rates

On February 6, the State Bank of Vietnam held a conference to implement credit solutions, banks to support businesses and people affected by the acute respiratory infection caused by the coronavirus (nCoV) epidemic.

 

At the conference, Deputy Governor Dao Minh Tu said that the epidemic can negatively affect the production and business of people and businesses, especially the tourism service industry, logistics, import and export, agricultural production, etc. thereby affecting lending activities, repaying bank debts.

 

In order to continue implementing solutions to promote credit for production and business in the conditions affected by the epidemic, the Deputy Governor suggested that commercial banks proactively grasp the production situation, business, the extent of damage of customers who are borrowing capital due to the impact of the nCoV epidemic to promptly apply measures to support and remove difficulties for customers such as restructuring debt repayment terms, consider loan interest exemption and reduction... according to current regulations.

 

On the other hand, coordinate with departments, departments and branches to promptly advise the People's Committees of provinces and cities on solutions to handle risks, support to remove difficulties for businesses and people to borrow damaged capital according to regulations.

 

Deputy Governor Dao Minh Tu requested the Department of Monetary Policy, the Department of Credit of Economic Sectors (State Bank) to study and direct commercial banks to restructure debts, debt transfer, debt extension... to support businesses and people damaged by the nCoV epidemic.

At the same time, the above focal points actively study to complete the draft support mechanism for bank borrowers affected by this epidemic as soon as possible (no more than 2 weeks). In which, it is ensured to avoid taking advantage of the support mechanism to affect the credit market and the classification and handling of bad debts.

On the other hand, Mr. Tu said, the State Bank is ready to support liquidity for commercial banks in case of being affected by the epidemic. Currently, the liquidity of commercial banks is abundant, there is no shortage of capital. Therefore, the Deputy Governor asked commercial banks not to increase interest rates, including deposit interest rates.

 

Notably, information at the conference said that in case of need, the State Bank will make adjustments to indirectly support commercial banks to reduce interest rates, support businesses and people.