Governor Nguyen Thi Hong emphasized that the State Bank of Vietnam is one of the very few central banks in the world to reduce interest rates. The average interest rate decreased by about 1% compared to the end of 2022.
At the conference, Prime Minister Pham Minh Chinh worked with the Executive Board of the Association of Small and Medium Enterprises on the operation situation of enterprises and solutions. remove difficulties for this block, the Governor of the State Bank Nguyen Thi Hong confirm continue to closely follow the direction of the Government and economic and monetary developments, actively implement solutions from the banking industry as well as coordinate with ministries and agencies to continue to support to remove difficulties for businesses. businesses, people in general and small and medium enterprises in particular.
Timely remove difficulties for businesses
Currently, the small and medium-sized enterprises account for about 97% of the total number of enterprises operating in Vietnam (with 857,600 enterprises), this is the customer group that the banking industry prioritizes in credit granting activities according to the guidelines. direction of the Government. At the conference, representatives of business associations and businesses also reflected that they are currently facing many difficulties in production such as limited output, lack of capital, etc.
Governor Nguyen Thi Hong said that the difficulties of small and medium-sized enterprises are caused by many objective and subjective reasons, requiring many solutions from many agencies, ministries, localities and businesses themselves.
On the side of the State Bank, this agency is very interested in removing difficulties for businesses and people in general, and small and medium enterprises in particular. Since the COVID-19 pandemic occurred, the banking system has devoted many mechanisms and policies to support businesses. For example, the policy of interest reduction, interest exemption, and reduction of sharing fees with businesses in the past period totaled VND 60,000 billion.
“This is a very large amount from the resources of banks, showing that the banking system accompanies businesses, including small and medium enterprises. Besides, many solutions on interest rates, credit, debt restructuring and debt retention have been implemented,” the Governor said.
Listening to the opinions of small and medium enterprises, the Governor said that for the banking sector, opinions revolved around two issues, namely interest rates and credit access.
Regarding interest rates, the Governor said that in the context that central banks of other countries still maintain interest rate high and continue to increase interest rates, on the basis of considering the context and situation, the State Bank has adjusted down the operating interest rates 4 times, bringing the operating interest rates to the level before the COVID-19 epidemic occurred. .
The Governor also emphasized that the State Bank of Vietnam is one of the very few central banks in the world to reduce interest rates. Credit institutions are also actively reducing interest rates, the average interest rate is about 1% lower than the end of 2022, due to the policy lag, it is possible that credit institutions will continue to reduce in time. next.
The Governor also said that lowering interest rates is a great effort, because when lowering interest rates, the State Bank must steer and coordinate policy tools to stabilize not only the money market but also the monetary market. but also the foreign exchange market, ensuring the safety of banking operations.
The Governor also said that lowering interest rates is a great effort of the whole banking industry. (Photo: PV/Vietnam+)
With regard to credit access, the Law on Credit Institutions currently stipulates that credit institutions require borrowers to provide documents proving the feasibility of the project plan, financial capacity to ensure the quality of the project. ability to repay debt, the purpose of using capital for the right purpose. The guiding circular of the State Bank also stipulates the same. The State Bank does not stipulate that loans must have collateral; The State Bank also does not stipulate the ratio of loans to the value of collateral and does not stipulate the documents that customers must provide to credit institutions to prove eligibility for loans.
These issues are completely determined by the credit institution in its own internal process. Documents proving eligibility for loans vary depending on the purpose of the loan, such as a loan for real estate investment, a loan to implement an export project, a loan for agricultural production, etc. other. The State Bank regularly directs credit institutions to review loan procedures, creating favorable conditions for enterprises to access capital, but still must comply with the provisions of law.
Increase Interaction between bank and business
The interaction between banks and businesses is very necessary to understand, share and identify difficulties and obstacles to solve together on the basis of compliance with the law.
There are opinions that joint stock commercial banks mobilize high interest rates should lend higher interest rates, there are banks mobilized in one province and lend in other provinces, businesses cannot borrow from commercial banks. share. With this opinion, the Governor explained that the decision on deposit and lending interest rates is decided by credit institutions themselves, in case enterprises are eligible for loans if they cannot borrow from joint stock commercial banks. there is still the option of borrowing from state-owned commercial banks.
The banking industry has implemented many solutions to support small and medium enterprises. (Photo: PV/Vietnam+)
Ms. Hong said that now our country has its own Law on Supporting Small and Medium Enterprises and 5 Decrees guiding the Law. But it is the enforcement of these policies that matters. On the banking side, in order to support small and medium-sized enterprises, the State Bank has a solution to stipulate a ceiling on short-term lending interest rates for priority sectors including small and medium-sized enterprises, the State Bank of Vietnam, and the State Bank of Vietnam. The State has issued a circular guiding loans along the value chain, agricultural enterprises applying high technology.
However, the difficulties of small and medium enterprises need to be fully identified and evaluated, so that there can be a winning and correct solution.
“The government needs to hold a conference to review the overall implementation of policies to support small and medium enterprises in accordance with the Law on Supporting Small and Medium Enterprises in order to effectively solve the problems. Accordingly, each ministry, sector and locality has solutions and policies to jointly solve difficulties for small and medium enterprises, it is not possible for any single industry or policy to solve all problems. “The Governor suggested.
Among the support solutions, the Governor said that strengthening the performance of local credit guarantee funds is very important because the locality has the best understanding of the activities of businesses in the area. If resources are devoted to guaranteeing loans for small and medium-sized enterprises, it is believed that credit growth will be higher and small and medium-sized enterprises will be more supported.
In order to increase capital access for businesses, the Governor said that small and medium-sized enterprises themselves also need to overcome their limitations because those are the problems that are hindering banks in making decisions. loan. Therefore, small and medium enterprises need to improve their corporate governance, financial situation, and information transparency./.
According to Thuy Ha (Vietnam+)
