SBV Bac Giang: Supporting Businesses to Overcome Difficulties

10:38:01 AM | 10/9/2014

Recently, the State Bank of Vietnam - Bac Giang Branch (SBV Bac Giang) has been actively implementing solutions on monetary policy of the Central Bank to ensure reasonable credit growth to stabilise the money market and foreign exchange. Besides, SBV Bac Giang focused on directing local credit institutions to reduce costs and adjust lending rates downward in line with the macroeconomic situation and the direction of the SBV, which helps remove the difficulties of enterprises.
Than Van Minh, Deputy Director of SBV Bac Giang, said that in 2013 and early 2014, to remove difficulties for enterprises, SBV Bac Giang has been actively revising down interest rates in line with the economic realities. In addition to the significant reduction of the interest rates for new loans, the bank has asked commercial banks to consider adjusting the interest rates on existing loans of less than 13 percent per year and exempting or reducing the interest of the payable for loss of assets that resulted in financial difficulties under law or financial viability of banks, and providing either a reduction or an exemption system of interest rates for financial institutions. To date, the interest rate of new loans in the 5 priority areas are commonly at 7-8 percent per year and 7.5 to 12 percent per year for the manufacturing and business sector. Besides the lowering of interest rates, the central bank also continued operating a flexible credit policy towards credit expansion coupled with the safe operation of banks, that is consistent with the target of the monetary policy operation system and support for the economic growth at a reasonable level.
Next time, to improve the efficiency of the business support service, the SBV Bac Giang will direct financial institutions to drastically and comprehensively implement the monetary measures such as proactive consultancy on solving difficulties, assisting businesses with high potential and markets to access credits to serve for production and business operation, and positively restructuring the credit towards priority areas such as agriculture, rural areas, production of goods for export, supporting industries, small and medium enterprises, and the businesses with high labour rate.
In the first 6 months of 2014, the mobilisation of capital in the province rose 12.1 percent, with total amount of VND18,428 billion, an increase of VND1.995 billion over the same period in last year. It proves great performance of the banks in continuously diversifying forms of capital mobilisation from the civil and socio-economic organisations and proposing appropriate measures to attract capital, strictly implementing documents to raise capital, and building and implementing the customers' policies.
Besides operating the solutions to rapidly lower the lending interest rate, the central bank has directed banks to actively review and assess the repayment capacity of customers to remove customers' difficulties in debt loans, adjust repayment periods, and extend loans for customers who are engaged in production, sales and a positive trend with good repayment ability. Furthermore, the SBV Bac Giang has also directed local banks to work out solutions to handle, prevent and limit bad debt. As of the end of June 30, 2014, the total of NPLs in the area accounts for only VND383 billion, accounting for 1.93 percent. This is a very encouraging result in the overall total NPLs of entire system of approximately 5 percent.
The SBV Bac Giang also directs local commercial banks to improve quality, develop treasury services, payments and foreign currency in the area.
The SBV Bac Giang requires local banks to ensure good supply and timely meet cash demand and guarantee fund security. The bank is strictly complying with Directive 20/2007 / CT-TTg of the Prime Minister on making payment via account. To date, the province has 113 ATMs, with over 343,000 ATM cards in overall districts and communes. The connection of the POS network that helps promote non-cash payments is also one of priorities.
Ngo San