Due to the overall impact of the sluggish economy, the businesses in Quang Nam province are facing major challenges such as shrinking markets, weaker demand, and increasing inventories. Following up on the implementation of Resolution 01/NQ-CP and Resolution 02/NQ-CP dated June 1, 2013 by the Government on a number of solutions to solve difficulties for businesses, assist markets, resolve non-performing loans to rescue the real estate market, and handle bad debts and inventories, the banking sector of Quang Nam is actively coordinating with related departments to facilitate local businesses to access loans to maintain and expand business size and gradually become a safe and sound financial source for businesses and residents.
Particularly, the State Bank of Vietnam (SBV) branch in Quang Nam province has issued Dispatch 86 /QNA-NGTH and KSNB dated February 4, 2013 to require credit institutions to design a business plan and credit growth plan in 2013 in accordance with the guidance, to implement the credit solutions effectively to increase the economic growth rate at a reasonable level, to strictly comply with the regulations on deposit rates and lending rates under the direction of the SBV, to apply measures to improve financial capacity, management, and security of banking operations, and to proactively solve bad debts. By the end of March, 2013, there were 1,638 local businesses having credit relationship with banks with an amount of nearly VND14,999 billion, accounting for 68.49 percent of total loans, down by 2.64 percent compared to the beginning of the year. The banking sector has received, appraised and approved 409 applications for loans and also, declined some applications as ineligible for loans.
According to Ms Luu Thi Thao, Director of SBV branch in Quang Nam, due to recent impacts of national economy in general and Quang Nam’s economy in particular, the business activities are not effective enough. Despite low interest rates, businesses’ access to capital is still difficult. According to Thao, the main causes are the inability of the businesses to meet the lending requirements, reluctance of the businesses to make loans due to lack of product outputs, insufficient profits of the businesses to pay interests on bank loans and cover operating costs, and inability of the businesses to access loans in US dollars due to the government’s policy mechanism.
Facing the problems of the economy, since the beginning of the year the banks have introduced packages with preferential interest rates to increase the businesses’ abilities to absorb capital. The banking sectors always actively manages financial resources and offers credit packages at reasonable interest rates to meet business demands. Some banks are now implementing credit packages with low interest rates such as the “target customer” programme of Vietinbank, “Banking activities for SMEs, large incentives for exporters” programme, the preferential credit packages of VCB, BIDV, MSH, Sacombank, and SHB, the “new partner, new success” package of An Binh Bank, and the credit package of temporary procurement and storage of grain of Mekong Housing Bank, to support businesses. Each programme, in terms of 1, 3, 6 months, is expected to continue based on the market conditions and the economy.
The SBV branch in Quang Nam has complied with Announcement 198/TB-NHNN dated July 9, 2012 and started on July 15, 2012 to decrease the interest rate of both old and new debts to 15 percent per year to solve the business problems and support businesses during business operations. The SBV also focuses on reviewing and assessing business performance to pay debts before proposing restructured debt solutions suitable for each client’s loan repayment. The bank also decreased the interest rates of the credit contracts signed previously to remove difficulties for enterprises and borrowers.
Currently, some of local banks such as Vietinbank branch in Quang Nam, Sacombank and Social Policy Bank is providing the lending rate less than 15 percent. Amongst 23 credit institutions, 18 institutions are offering the credit rate more than 15 percent on the total debt of VND633 billion, accounting for 2.86 percent of total outstanding loans, which has been decreased by 80.65 percent compared to the end of July 2012 (when the interest rate decrease began). In particular, the majority of the loans for local individuals and outstanding debts of the businesses with bad debts could not be restructured for a decreased rate. Besides, the SBV branch in Quang Nam regularly monitors and directs the local credit institutions to continue to adjust the lending rate to 15 percent per year and to 13 percent per year from May 13, 2013.
Director Thao said to fulfil the targets for 2013, for the remaining months of the year, the SBV in Quang Nam will continue to implement measures to remove difficulties of the businesses, solve the bad debts, facilitate businesses to access credit as prescribed by law, support the businesses to maintain and develop business operation on the basis of the provisions of the Government and the financial ability of the credit institutions.
Cong Luan
Đăng ký: VietNam News