Sharing Difficulties with Customers

 

Habubank is supporting exporters to facilitate payment procedures. Accordingly, the Hanoi-based lender will consider lending foreign currencies at softer interest rates to exporters if they have pledged to repay in foreign currencies. Customers rated from A to AAA by Habubank will enjoy a discount of 1.5 percent per annum from the normal rate and the rebate for companies rated from B to BBB is 1 percent. Thus, exporters can borrow loans in foreign currencies at a minimum interest rate of 5 percent per annum and in the local dong at 13 percent.

 

Before that, Habubank restarted its preferential export financing credit for exporters and companies with incomes in US dollars and euro. Accordingly, the lender will consider lending after customers have signed export contracts with payment accounts at Habubank, export and import contracts and letter of credit (L/C) with Habubank being an advising bank and export documents discount (in case of L/C payment method) or being a remitting bank in case of documents against acceptance (D/A), documents against payment (D/P), or customers show the entire export documents, including the original bill of lading (B/L), for Habubank. The bank only accepts to transfer documents for borrowing importing customers when contract payment has arrived at Habubank in case of cash against documents (CAD). These companies will be allowed to borrow the Vietnamese dong but will be levied much lower interest rates on US dollars.

 

Individual and corporate customers satisfying the rural financing project will be also offered preferential loans at Habubank. Following the successfulness of the rural financing project 2, Habubank continues to deploy the third rural financing project to provide more funds for its customers to expand production and business.

 

The bank is striving to help stabilise the exchange rate of Vietnamese dong against foreign currencies. The exchange rate is forecast to climb due to an imbalance in supply and demand of hard foreign currencies. The lending in foreign currencies at Habubank will partly help restrict negative impacts on the market if the forecast is the case.