Payment rescheduling, interest rates reduction

Early this year, Covid-19 outbreak affected production and business of many enterprises in the province. Most of the enterprises face difficulties in consumption of goods, lack of raw materials due to import restriction for a long time.

Staff of Vietcombank Bac Giang branch guides Covid-19 hit enterprises to finalize documentation for loan extension.

According to the competent agency, 80 percent of enterprises in the province operating in industrial sector depend on imported materials mainly from China, Republic of Korea and United States. About 160 enterprises face difficulties in consumption of goods while purchase orders have been cut down by 20 to 40 percent compared to the same period.

Speaking at the event, several enterprises and cooperatives shared, their production and business operation has been slowed down even suspended for 1 or 2 months due to long-lasting pandemic.

Many enterprises reduced working hours or forced workers to leave jobs alternatively. As a result, a number of enterprises face obstacles in loan maturity and interest payment.

Focusing on removing difficulties

In response to recommendations of the enterprises and cooperatives, Nguyen Van Oanh stressed, SBV Bac Giang will continue directing commercial banks to well implement the Circular No 01 dated 13 March 2020 by the State Bank of Vietnam on credit institutions and foreign bank branches and restructuring the repayment period, waiver and reduction of interest and fees and maintaining the debt classifications in order to support those clients affected by Covid-19 pandemic.

Accordingly, SBV will work with the provincial Business Association and Young Entrepreneurs Association to continue grasping situation of pandemic-hit enterprises to direct commercial banks to freeze and reschedule debts and reduce interest rates.

Many commercial banks such as Agribank, Bac Giang branch opened hotlines to receive opinions of enterprises about difficulties and obstacles in loans while arranging personnel to finalize documentation for restructuring the repayment period and reduction of interest rates.

The banks in the province had restructured the repayment period for 1,331 customers since early this year until the end of 31 August with balance of 1.668 trillion VND (72.332 billion USD) and payment reschedule from 6 months to 01 year.

The banks cut down interest rates on loans to 3,379 clients with the balance enjoying interest reduction of 9.662 trillion VND (419 billion USD), down from 0.5 to 2.5 percent per year against previous years and lent some 17.5 trillion VND (759 million USD) to 6,793 customers to keep up their business and production with lower interest rates by 0.5 to 2.5 percent.

Particularly, Vietcombank Bac Giang implemented 3 stages of interest reduction and reduced fees for interbank fund transfer in Vietnamese dong for business clients.

Agribank Bac Giang restructured loan resources, reduced interest rates and provided short-term loans with preferential interest of 5 to 5.5 percent per year to preferred clients.

Nguyen Van Oanh added, in order to ensure all enterprises are entitled to the incentive policies until the end of this year, the banks should inform enterprises affected by Covid-19 to promptly sent written requests to the banks for verification.

Enterprises facing difficulties in mortgage can apply for supplementing certificate of land-attached assets to increase loan resources.

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Minh Linh