The Bank - Business connection conference

The delegates attend the conference

According to a report of the State Bank, Provincial Branch, by the end of May 2024, the total outstanding loans of credit institutions in the province have reached over 103 trillion VND, seeing an increase of 5.3% compared to the beginning of the year. To remove difficulties for businesses in production and business, banks have continued to reduce lending interest rates compared to the end of 2023; deployed a lot of diverse, abundant and flexible interest rate forms, such as: preferential loan interest rates, normal loan interest rates, fixed interest rates throughout the loan period, fixed interest rates for the first two years (from the 3rd year it fluctuates according to amplitude). Specifically: Preferential loan interest rates for production and business customers who meet the following conditions: short term at 3.2% - 4.0%/year; medium and long term at 6.2%/year. Normal loan interest rates for production and business customers who meet the conditions: short term at 5%-6%/year; medium and long term at 6.5% - 7.5%/year.

In order to support customers to overcome difficulties, credit institutions and People's Credit Funds have actively carried out policies to restructure debt repayment terms and maintain the same debt group as prescribed in Circular No. 02/2023/TT- SBV of the State Bank. The results are as follows: The total value of debt with restructured repayment terms reached VND 693 billion with 94 customers having their repayment terms restructured.

However, the process of accessing credit loans for businesses faces such a number of difficulties and obstacles as: The procedures for granting the certificates of land use rights and assets attached to land for businesses are still slow, especially for businesses in the new investment process, leading to no collateral when accessing loans. In some localities, there are still many problems in granting business registration to agricultural production households (growing flowers, ornamental plants, raising pigs...), which leads to customers being unable to complete legal procedures to get a bank loan...

At the conference, representatives of a number of businesses, credit institutions, departments and branches expressed their opinions on the current situation and difficulties in accessing credit capital; made proposals and recommendations to support businesses in accessing capital sources to develop production and business...

Speaking at the conference, Mr. Nguyen Le Huy, Member of the Standing Board of the Provincial Party Committee, Standing Vice Chairman of the Provincial People's Committee requested departments and branches to review, capture information, and promptly remove difficulties and obstacles of businesses, create favorable conditions for businesses to access credit capital within the prescribed legal framework. The State Bank, Provincial Branch continues to direct and supervise credit institutions to effectively deploy credit programs to support people and businesses; focus capital on production, business, priority areas and national target programs; create favorable conditions for people and businesses to access bank loans, meet the legitimate needs of people and businesses... Businesses need to strengthen management capacity and restructure operation, build effective and feasible production and business plans so that credit institutions have a basis for appraisal and consideration of lending in accordance with the operating situation and needs of the business.