Implementing the directions of the Government, Governor of State Bank of Vietnam (SBV) on solutions to resolve difficulties of businesses and support markets, in the past time, especially since 2012, Vinh Long banking sector has performed its tasks well, putting priority on capital investment for agriculture, export, small and medium enterprises (SMEs), enterprises engaged in supporting industry and high technology, and restructuring debts for customers.
According to Mr Nguyen Trong Nghiep, Director of SBV branch in Vinh Long, facing a lot of difficulties, some commercial banks suffer from loss but they still strive to cut down high interest rate of old loans to a maximum of 15 percent annually; reduce cost to lower loan interest rate to support customers. Total loans in 2012 reached VND30,663 billion, 8.03 percent less than that in 2011, but total loans in the agriculture sector accounted for VND11,273 billion, 1.8 percent higher than that in 2011, reaching 36.76 percent of total loans.
Total credit to December 31 reached VND13,572 billion, up 1.16 percent over the beginning of the year. Credit for rural area and agriculture development alone was VND6,461 billion, up 10.44 percent over 2011, making up 47.6 percent, which is the result of implementing VND short term loans for several fields and economic sectors (according to Circular 14, Circular 33 and Circular 09).
To well implement capital mobilisation, based on credit demand for investment and economic development of the province, as well as difficulties in capital mobilisation, Vinh Long branch of the SBV has constructed and organised a special subject of “Roles of the banking system in Vinh Long province in mobilising capital for investment and development – actual condition and direction for the future” which belongs to the subject of “Solutions to improve mobilisation, management and utilization of capital for investment and development of Vinh Long” to mobilise ultimately idle money of organisations, individuals and satisfy capital demand for projects of provincial socio – economic development. Moreover, the branch encourages local credit institutions to call for customers to deposit idle money in banks; expand and diversify products of capital mobilisation in compliance with direction of the SBV. It also encourages credit institutions to expand networks to rural areas to mobilise idle money, as well as create conditions for people to get access to capital.
Understanding the difficulties of small and medium enterprises in accessing capital, in the coming time, the provincial SBV will direct credit institutions to implement well solutions to solve difficulties, restructure loans for enterprises, consider granting new loans for feasible projects, helping enterprises develop. It will also enhance examining and supervising credit institutions in implementing these solutions, at the same time organising teams supervising operation condition of customers, relation between enterprises and banks to timely identify difficulties of enterprises and have proper solutions or proposals for relevant authorities.
Moreover, provincial SBV will elaborate solutions for solving bad loans and closely coordinate with relevant departments, industries and organisations to recover bad loans for banks, as well as review customers with difficulties over the authorities of provincial SBV bank to propose provincial People’s Committee to resolve difficulties for enterprises.
Mr Nghiep said that as for old loans, provincial SBV will continue requiring commercial banks to consider reducing interest rates, as well as consider exempting or reducing interest rates for difficult enterprises in compliance with direction of the SBV.
Hoang Lam
Vietnamese
