On December 7, Prime Minister Pham Minh Chinh chaired a conference to discuss solutions to overcome difficulties in credit growth for production and business, promoting growth and macroeconomic stability.
Attending the conference were Deputy Prime Ministers Le Minh Khai and Tran Hong Ha; leaders of ministries and branches; Presidents and general directors of 38 commercial banks, representatives of the Vietnam Banking Association, associations, industries, Association of Small and Medium Enterprises, Vietnam Real Estate Association…
The room for expanding credit growth is very large
The report of the State Bank (SBV) said that by November 30, credit to the economy reached more than 13 million billion VND, an increase of 9.15% compared to the end of 2022 (the same period in 2022 increased by 12,000 billion VND). 02%). Currently, deposit and lending interest rates have decreased by an average of 2%-3% compared to the end of 2022 and it is expected that lending interest rates will continue to decrease in the near future.
After 7 months of implementing the policy of restructuring debt repayment terms, keeping the same debt group, by October 31, the total outstanding debt (principal, interest) was restructured by credit institutions and kept the same. The debt group is 158,694 billion VND, with 167,220 customers having their debt repayment terms restructured and keeping the debt group intact.
Implementing the interest rate support policy for businesses, cooperatives, and business households, interest rate support sales reached about 207,000 billion VND, outstanding interest rate support loans were nearly 64,000 billion VND, cumulative interest rate support amount Since the beginning of the program, it has reached more than 980 billion VND. Notably, the Vietnamese Dong only depreciated by over 2%, relatively stable compared to other currencies in the region.
After listening to the discussion and concluding remarks, Prime Minister Pham Minh Chinh acknowledged and praised the State Bank for managing to overcome the most difficult time in September and October 2023. However, the Prime Minister also said that credit growth is still low; Credit growth is uneven (some credit institutions and commercial banks have quite high growth, some have low growth, even negative growth); Businesses accessing credit still have many difficulties.
The remaining room in the entire system for credit institutions to expand credit growth is very large, with over 700,000 billion VND allocated to the economy. The results of implementing preferential credit programs have not met expectations, especially the VND 120,000 billion package for social housing construction. Bad debt tends to increase and poses potential system safety risks…
The Prime Minister said that this conference has the same spirit as the “Dien Hong” conference to discuss removing difficulties in capital for the economy, opening up capital sources for production and business, thereby promoting growth and development. macroeconomic stability. The Prime Minister stated clearly that banks and businesses are located in an economic ecosystem. The development of banks and businesses are related to each other and to the development of the economy. Each person, each subject must have the same responsibility, “contributing to the storm” so that the country can overcome difficulties and have common development.
According to the Prime Minister, in difficult times, it is necessary to have policies in the spirit of “harmonious benefits, shared risks” to be appropriate, correct, and promote development. “The policy must be very flexible, we do not lower lending conditions, but can we be flexible? Businesses are having difficulties, but if their projects are feasible, can they lend?, the Prime Minister asked.
The Prime Minister stated clearly, promoting the fight against negativity, not lowering credit standards, but handling them flexibly to suit the situation; promptly handle legal problems; Promote the use of market tools, reduce and eventually eliminate administrative tools. Promote the issuance of corporate bonds to mobilize capital for the economy; Promote fiscal policy related to capital, taxes, fees, public investment… to support monetary policy. Along with that, real estate businesses also have to restructure product segments and prices.
Review credit conditions
The Prime Minister assigned the State Bank of Vietnam 10 groups of tasks and solutions, including ensuring the implementation of the credit growth target set for 2023 to contribute to economic growth, creating momentum for 2024 associated with operational safety. banks and credit institutions system. The State Bank directs credit institutions to review credit conditions and need to be more flexible and closer to the situation (especially collateral, lending procedures…) to support businesses and people in accessing capital. more favorable credit. Along with that, direct credit institutions to more drastically implement measures to continue reducing lending interest rates.
The Prime Minister requested to study the public announcement of the average interest rate of the credit institution system, the average lending interest rate of each credit institution, the average interest rate difference between deposits and loans; thereby creating conditions for businesses and people to choose banks with low interest rates to borrow; continue to reduce interest rates appropriately.
Stop lending focusing on a number of businesses and projects in the ecosystem, or in the “backyard” of the corporation because it can easily compromise the safety and soundness of the bank. It is strictly forbidden to expand credit room and reserve low interest rates for members of the bank’s board of directors. Authorities are taking action to handle violations in the situation where people deposit money at banks and are brokered to buy individual corporate bonds at higher interest rates.
The Prime Minister also requested the Ministry of Public Security to continue its policy of not criminalizing economic relations; have drastic solutions to handle violations of organizations and individuals disguising currency business, creating favorable conditions (environment) to strengthen and develop the system of financial institutions providing consumer loans, contributing to Prevent black credit…
Focus on priority areas and growth drivers
The Prime Minister requested credit institutions to closely follow the directions of the Government and the State Bank, continue to reduce costs, simplify lending procedures and conditions, and increase the application of information technology. Digital transformation to continue reducing lending interest rates, increasing access to credit for people and businesses…
Credit institutions continue to direct credit capital to production and business areas, priority areas and growth drivers of the economy according to the Government’s policies; continue to have effective solutions to promote the implementation of credit programs with preferential policies under the direction of the Government and the Prime Minister.
Credit institutions and financial companies promote consumer lending to boost consumer demand, production and credit demand; accelerate the progress of building and organizing the implementation of restructuring plans associated with bad debt handling in the 2021-2025 period; Drastically, synchronously and effectively deploy preventive measures and minimize the arising of new bad debts; actively implement digital transformation solutions; continue to develop and perfect payment products and services, improve the internal payment system, ensure safe, smooth operations, seamless connection and integration with services across industries, other areas to expand the digital ecosystem; Focus on clear, complete, transparent and accurate communication of credit institutions’ policies, products and services to the public.
The Head of the Government directed the Ministry of Finance to continue operating fiscal policy in synchronous, close and harmonious coordination with monetary policy to promote investment and public investment to serve growth and stability. Stabilize the macro economy, control inflation, ensure major balances of the economy; Promote solutions to make the corporate bond market and stock market truly stable, develop healthily, safely and effectively, ensuring the confidence of domestic and foreign investors; Strengthen direction and guidance on offers and transactions of corporate bonds to ensure compliance with legal regulations, create favorable conditions to support businesses, including real estate businesses that issue corporate bonds .
The Prime Minister requested relevant ministries, branches and localities to focus on implementing more strongly and drastically the directions of the Government and the Prime Minister, closely coordinate, support and create conditions for the State Bank of Vietnam and the Prime Minister. The system of credit institutions removes difficulties in credit growth for production and business, promoting growth and stabilizing the macroeconomy; for the goal of building a strong and prosperous country, with people increasingly happy and prosperous.
According to SGGP.org.vn
