What Does Banking Industry Do to Ease Covid-19 Epidemic Impact?

3:01:02 PM | 21/2/2020

The Vietnamese Government requests ministries, sectors and localities to regard the prevention and containment of Covid-19 outbreak as a particularly important task; we should be neither subjective nor confused, wavering, and to have active and strenuous response in all aspects.

The Government recently issued Resolution 11/NQ-CP on the Government's regular meeting in January 2020. The Resolution stated that the Government agreed on the point of view of drastically implementing measures to prevent and contain the disease caused by coronavirus, continuing to be consistent in the goal of macroeconomic stability, and making best efforts to achieve the growth and socio-economic targets.

According to the Resolution, the Government unanimously assessed that in January 2020, the macro-economy continued to be maintained stably; exchange rates, interest rates, financial and monetary markets were proactively managed; interbank market interest rates tended to decrease. State budget revenues increased by 4.8%, investment capital from the State budget increased by 8.4%, total investment capital with foreign elements increased by 179.5%, total retail sales of goods and consumer service revenue increased by 10.2%, business environment continued to improve.

However, right from the beginning of 2020, Vietnam faced many difficulties and challenges. Therefore, the Government agreed on the direction that was to both drastically implement measures to prevent and contain Covid-19, and at the same time continuing to maintain the objectives of macroeconomic stability and ensuring large balances of the economy, making best efforts to achieve the growth and socio-economic targets; requesting ministries, branches and localities to show their political determination, to urgently and drastically, synchronously and effectively deploy tasks and solutions to socio-economic development with a more active and strenuous spirit, more dynamic, creative, more sensitive, to have appropriate and timely policies in order to prevent and control the epidemic and to minimize and compensate for damage caused by the epidemic in all fields.

The Government requested ministries, sectors and localities to consider the prevention and control of covid-19 a particularly important task, neither subjective nor confused, wavering, active and strenuous in responding in all respects, willing to accept partial economic losses to protect the health and lives of the people.

In response to the impact of Covid-19 epidemic on socio-economic development, the Government requested each ministry, ministerial-level agency, government-attached agency, and provincial/municipal People's Committees under the Central Government to continue to closely monitor the situation, evaluating and quantifying the impact of the epidemic on production, business and growth activities of each industry, each field and each area, especially import and export, agriculture, industry, tourism, transportation and services to update the growth scenario in accordance with the Prime Minister's direction in Document 733/VPCP-KTTH on February 3, 2020; strongly promoting production and business, making efforts to achieve the objectives and tasks of socio-economic development; proposing appropriate solutions and measures to limit the impacts caused by Covid-19.

All levels, sectors and State administrative agencies from the central to local levels should strengthen administrative discipline and order, highly concentrating on well performing the assigned tasks, not letting the work stagnate; strictly implementing the Official Telegraph 122a/CD-TTg on January 30, 2020 of the Prime Minister on urging the implementation of the tasks after the Lunar New Year holiday in 2020.

As for the banking sector, the State Bank of Vietnam is assigned by the Government to continue to closely monitor developments, to proactively, flexibly and carefully manage monetary policy in close coordination with fiscal policies and other macroeconomic policies to control inflation, to maintain macroeconomic stability, to stabilize money and foreign exchange markets; and to continue focusing on credit for priority areas, production and business.

The State Bank must also instruct credit institutions to restructure loan repayment terms, exempte and reduce interest rates, maintain debt groups, provide new loans to stabilize production and business, support and solve difficulties for enterprises and people to borrow money after damaged by the impact of Covid-19; continuing to promote non-cash payment methods.