Support interest rates to recover businesses, cooperatives, and business households in the province in the first 4 months of 2022

After the Government issued Resolution No. 11/NQ-CP dated January 30, 2022 on the Socio-Economic Recovery and Development Program and implemented Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Program and implemented the Official Dispatches of the Government, the Prime Minister, and directives and instructions of the Ministry of Planning and Investment, the People’s Committee of Vinh Phuc province issued Plan No. 28/KH-UBND dated February 8, 2022, in which one of the set goals is “Recovering and rapidly developing production and business activities; facilitating businesses, economic organizations and people to access support sources”.

Accordingly, in the first 4 months of 2022, the province has actively implemented interest rate support measures to restore businesses, cooperatives, and business households and has achieved certain results:

For customers affected by the Covid-19 epidemic , support activities focus on exempting and reducing loan interest; restructuring debt repayment terms; lowering interest rates on existing outstanding loans; and providing new loans with preferential interest rates, specifically:

New loans with preferential interest rates for customers affected by the Covid-19 epidemic accumulated from January 23, 2020 to 28,748 customers, outstanding loans reached 31,671 billion VND, of which: Enterprises: 1,298 enterprises, outstanding loans of 13,598 billion VND; Individuals, households, cooperatives…: 27,450 cases, outstanding loans of 18,073 billion VND;

Lowering interest rates on existing loans: The number of customers whose interest rates have been reduced as of March 31, 2022 is 27,636, with outstanding loans reaching VND 39,848 billion. Of which: Enterprises: 1,028 enterprises, outstanding loans of VND 11,105 billion; Individuals, households, and cooperatives: 26,608 cases, outstanding loans of VND 28,743 billion. The total actual interest rate reduction is VND 140 billion, the expected interest rate reduction is VND 99 billion;

Restructuring the debt repayment period and maintaining the debt group for 266 customers, outstanding debt reached 389 billion VND (principal 382 billion VND, interest 9 billion VND), of which: Enterprises: 41 enterprises, outstanding debt 305 billion VND; Individuals, individual business households: 225 cases, outstanding debt 84 billion VND. Accumulated from March 13, 2020, the total value of debt with restructured repayment period reached 3,370 billion VND for 578 customers (of which 118 enterprises, outstanding debt reached 1,442 billion VND; the rest are individuals, households, cooperatives…);

Cumulative loan interest exemption and reduction from March 13, 2020: Credit institutions exempted and reduced interest for 1,685 customers, the amount of exempted and reduced interest reached 42 billion VND, of which: 103 corporate customers were exempted and reduced interest with the amount of 9.2 billion VND; 1,582 individual customers and individual business households were exempted and reduced interest with the amount of 32.8 billion VND;

In addition, the content of fee exemption and reduction (money transfer fee, withdrawal fee, fee for converting to chip card, fee for early loan repayment…) has also been strengthened: Credit institutions have implemented fee exemption and reduction programs for customers with a total amount of exemption and reduction reaching 16.3 billion VND, of which: enterprises reached 10,905 customers, amount of 4.5 billion VND. Individuals, households, individual businesses: 321,070 customers, amount of 11.8 billion VND.

In addition, lending to employers to pay for work stoppage wages and pay for production recovery according to Resolution 68 and Decision 23 also recorded results: The provincial Social Policy Bank reviewed 1,045 employers, of which 25 employers had the need and were eligible for loans. By March 31, 2022, the provincial Social Policy Bank disbursed VND 3,859.73 million to 11 employers to pay for work stoppage wages for 1,456 employees; 14 employers borrowed capital to pay for production recovery wages, the amount reached VND 3,355.3 million.

Regarding the implementation of interest rate support for loans from the State budget for enterprises, cooperatives, and business households according to Resolution No. 11/NQ-CP

Implementing the tasks in Section c, Point 3, Section II of Resolution 11/NQ-CP dated January 30, 2022 of the Government on the Socio-Economic Recovery and Development Program, the State Bank of Vietnam has drafted a Decree on interest rate support from the State Budget for loans from commercial banks to enterprises, cooperatives, and business households and is finalizing a draft Circular guiding lending; Draft Decree on preferential credit policy to implement the National Target Program on Socio-Economic Development in Ethnic Minorities and Mountainous Areas for the 2021-2025 period. Currently, the draft of these 2 Decrees is being urgently completed by the State Budget to submit to the Government for promulgation in the coming time. As soon as the Central Government issues the document, the State Bank of Vietnam, Vinh Phuc Provincial Branch, will direct and coordinate with units and credit institutions in the area to implement it according to regulations.

Regarding interest rate support for loans at the Social Policy Bank

On April 8, 2022, the Vinh Phuc branch of the Vietnam Bank for Social Policies was assigned by the General Director of the Vietnam Bank for Social Policies credit targets for preferential loan programs according to Resolution No. 11/NQ-CP of the Government with 3 loan programs:

Loans to support job creation, maintenance and expansion according to Decree 61/2015/ND-CP and Decree 79/2019/ND-CP with an amount of VND 40,000 million;

Social housing loan according to Decree 100/2015/ND-CP amount of 58,500 million VND;

Lending to students with difficult family circumstances to buy computers and equipment for online learning according to Decision No. 09/2022/QD-TTg dated April 4, 2022, an amount of VND 3,800 million;

Currently, the Vinh Phuc Provincial Branch of the Social Policy Bank has assigned credit plan targets to districts and cities and will disburse loans immediately after the Prime Minister’s decision on interest rate support for loans at the Social Policy Bank.

It is believed that in the coming time, many activities to support enterprises, cooperatives and business households will be implemented more promptly and effectively, contributing to creating a strong recovery momentum for the provincial economy./.