Many domestic firms have no need for new loans (Photo: ndh.vn) Hanoi (VNS/VNA) - Low demand forcapital due to COVID-19 has caused bank credit in the first half of April todrop 0.5 percent compared with the end of March, according to the State Bank ofVietnam (SBV).
However, with a rise of 1.3 percent in thefirst quarter of this year, credit had still increased by 0.8 percent by April15.
The SBV said credit demand from firmsinvolved in industry, construction and agriculture had increased by 1 percentand 0.3 percent, respectively, while the figures had declined for trade,services, tourism and consumption. Credit demand from small- and medium-sizedenterprises (SMEs) also decreased by more than 1 percent.
According to Nguyen Quoc Hung, Director ofthe SBV’s Credit Department, demand had dropped off sharply and not only in Vietnambecause many other countries were applying social distancing measures to stemthe outbreak, which had caused a sharp decline in both local consumption andexport demand.
Given the current difficulties, many domesticfirms were focusing on capital recovery and debt repayments and had no need fornew loans, Hung said, adding four State-owned commercial banks wanted to boosttheir credit portfolios but could not.
According to the SBV, commercial banks weremainly focusing on debt structuring and providing 300 trillion VND (12.9billion USD) worth of credit at low interest rates to firms affected by thepandemic. More than ten banks had committed to lending at interest ratesreduced by 0.5-2.5 percentage points. As of April 10, almost 126 trillion VND (5.4billion USD), or 42 percent of the amount, had been lent to 6,500 borrowers.
The Military Bank (MB) has launched twocredit packages worth 45 trillion VND for large firms. The first package worth 17trillion VND with interest rates cut by 0.5-1 percentage points applied untilSeptember 30 this year is for customers with outstanding loans hit by COVID-19.The second package valued at 28 trillion VND with interest rates of 4.8-6 percentper year is set aside for new loans to stimulate firms.
The MB has already introduced a 30 trillion VNDpackage and another 20 trillion VND package with preferential interest ratesfor individual customers and SMEs.
The Nam A Commercial Joint Stock Bank(NamABank) has also launched a credit package worth VNĐ15 trillion with aninterest rate reduction of 2 percent for individual and corporate customers inagriculture, accommodation, restaurants and import-export.
The Lien Viet Post Commercial Joint StockBank (LienVietPostBank) has also announced a 10 trillion VND credit packagewith an interest rate cut of 2 percentage points for all borrowers untilSeptember 30 this year./.
However, with a rise of 1.3 percent in thefirst quarter of this year, credit had still increased by 0.8 percent by April15.
The SBV said credit demand from firmsinvolved in industry, construction and agriculture had increased by 1 percentand 0.3 percent, respectively, while the figures had declined for trade,services, tourism and consumption. Credit demand from small- and medium-sizedenterprises (SMEs) also decreased by more than 1 percent.
According to Nguyen Quoc Hung, Director ofthe SBV’s Credit Department, demand had dropped off sharply and not only in Vietnambecause many other countries were applying social distancing measures to stemthe outbreak, which had caused a sharp decline in both local consumption andexport demand.
Given the current difficulties, many domesticfirms were focusing on capital recovery and debt repayments and had no need fornew loans, Hung said, adding four State-owned commercial banks wanted to boosttheir credit portfolios but could not.
According to the SBV, commercial banks weremainly focusing on debt structuring and providing 300 trillion VND (12.9billion USD) worth of credit at low interest rates to firms affected by thepandemic. More than ten banks had committed to lending at interest ratesreduced by 0.5-2.5 percentage points. As of April 10, almost 126 trillion VND (5.4billion USD), or 42 percent of the amount, had been lent to 6,500 borrowers.
The Military Bank (MB) has launched twocredit packages worth 45 trillion VND for large firms. The first package worth 17trillion VND with interest rates cut by 0.5-1 percentage points applied untilSeptember 30 this year is for customers with outstanding loans hit by COVID-19.The second package valued at 28 trillion VND with interest rates of 4.8-6 percentper year is set aside for new loans to stimulate firms.
The MB has already introduced a 30 trillion VNDpackage and another 20 trillion VND package with preferential interest ratesfor individual customers and SMEs.
The Nam A Commercial Joint Stock Bank(NamABank) has also launched a credit package worth VNĐ15 trillion with aninterest rate reduction of 2 percent for individual and corporate customers inagriculture, accommodation, restaurants and import-export.
The Lien Viet Post Commercial Joint StockBank (LienVietPostBank) has also announced a 10 trillion VND credit packagewith an interest rate cut of 2 percentage points for all borrowers untilSeptember 30 this year./.
VNA
