Capital leverage helps businesses restore production and business
(Baonghean.vn) - Determining that banking activities play a vital role in the economy, the key tasks set out at the beginning of the term have been well completed by the Party Committee of the State Bank of Vietnam, Nghe An branch, especially implementing policies to prevent and control the epidemic and support economic recovery.
Many support programs are implemented.
During the period 2020 - June 2023, many directive documents, with many support policies from the Central level were issued. Closely following the direction of the State Bank of Vietnam, the People's Committee of Nghe An province, the State Bank of Vietnam (SBV) Nghe An branch led and directed the timely implementation of mechanisms, policies, and solutions on State management related to currency, credit, and banking activities. In the context of the complicated developments of the Covid-19 epidemic, the banking industry has proactively worked with customers to review and assess the impact of the epidemic, in order to propose solutions to remove difficulties for customers.
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| State-owned commercial banks maintain interest rates to help stabilize the economy. Photo: Thu Huyen |
Continue to implement Circular No. 01/2020/TT-NHNN and amended and supplemented documents on restructuring debt repayment terms, exempting and reducing interest and fees, and maintaining debt groups to support customers affected by the Covid-19 epidemic; provide loans to businesses to pay salary suspension for employees affected by the epidemic according to Resolution No. 42/NQ-CP, Resolution No. 68/NQ-CP of the Government, exempting and reducing payment service fees for people and businesses. Strengthen communication on support policies, regulations, conditions and procedures so that people and businesses can understand, easily access and agree. Direct the implementation of the 2% interest rate support program according to Decree 31/2022/ND-CP and Circular 03/2022/TT-NHNN in the area.
The State Bank of Vietnam, Nghe An branch, has also directed local banks to strengthen communication measures to help people and businesses grasp information, thereby contributing to putting policies into practice, implementing them effectively, on target, and to the right subjects.
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Results of credit programs to support customers in Nghe An. Graphics: Huu Quan |
The leadership in implementing political tasks at the Party Committee has been of high quality and effective according to the set plan. With the leadership role of the Party Committee, the activities of the banking sector in the area in the past half term have achieved positive results. By March 31, 2023, the capital mobilized in the area (excluding the Development Bank) reached VND 207,662 billion, an increase of 29.7% compared to 2020. Total outstanding loans reached VND 263,108 billion, an increase of 25.8% compared to 2020; bad debt is controlled below 1%. It is estimated that by June 30, 2023, the capital mobilized in the area will reach VND 209,781 billion, an increase of 31% compared to 2020. Total outstanding loans reached VND 268,340 billion, an increase of 28% compared to 2020.
Credit institutions in the area have restructured the debt repayment period and maintained the debt group for 3,276 customers, with the total debt value (principal and interest) with the accumulated restructured repayment period from March 13, 2020 being 4,347.6 billion VND. Exempted, reduced, and lowered loan interest rates for 183,575 customers, with the total debt value exempted, reduced, and lowered cumulative interest rates from January 23, 2020 being 116,987.8 billion VND. New loans with lower interest rates than before the pandemic, with cumulative sales from January 23, 2020 to date reaching 211,020.4 billion VND for 141,647 customers.
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| Trong Phuc Garment Company Limited in Dien Chau district received a loan with 0% interest from the Vietnam Bank for Social Policies to pay workers who were suspended from work during the Covid-19 pandemic. Photo: Thu Huyen |
One of the preferential loan policy programs that the State Bank has directed the Vietnam Bank for Social Policies to implement widely and effectively is the preferential programs using loan capital according to Resolution 11/NQ-CP.
Mr. Nguyen Van Vinh - Deputy Director of the Provincial Social Policy Bank said: Implementing the direction of the State Bank and the Social Policy Bank, by March 31, 2023, we have disbursed credit programs under Resolution No. 11/NQ-CP with outstanding loans reaching VND 16,400 billion, with nearly 333,000 customers receiving loans. Thanks to that, we have ensured 100% disbursement of loan programs for job creation, social housing loans, loans for students to buy computers, loans for preschools, loans for ethnic minority mountainous areas, bringing positive results.
Continue monetary policy solutions
In the past half term, in the face of many socio-economic difficulties, many new policies related to banking activities were issued, the amount of work requiring focused direction was very large.
In the first 2.5 years of implementing the Resolution of the Congress for the 2020-2025 term, with many difficulties and challenges such as epidemics, inflation, negative impacts from the financial market and real estate market, however, with the leadership and close direction of the superior Party Committee, the Provincial People's Committee, and the State Bank of Vietnam, the Party Committee of the State Bank of Vietnam Nghe An branch has effectively led the implementation of key goals and tasks with 7 targets achieved, 1 target exceeded the target set by the Resolution of the Congress at all levels, creating a premise for completing the Resolution of the Congress in the coming years.
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| Cashiering activities at a bank in Vinh city. Photo: Thu Huyen |
Support mechanisms and policies have brought about positive results, contributing to ensuring social security, removing difficulties for businesses, policy beneficiaries, and people affected by the pandemic, helping the economy overcome difficulties soon, not missing a beat with the global economic recovery process, and at the same time, creating a foundation and favorable conditions for socio-economic development in the 2021-2025 period and the following years.
Party Secretary, Director of the State Bank of Vietnam, Nghe An Branch, Nguyen Thi Thu Thu, said: Immediately after the successful 2020-2025 Congress and the adoption of the resolution (Resolution No. 04-NQ/DH dated March 26, 2020), the Party Committee concretized the contents of the resolution, issued an action program, and at the same time, disseminated it to Party cells and Party members for implementation. In addition to implementing a series of policies to support businesses and customers, the development of banking technology infrastructure, especially technology infrastructure to meet non-cash payment activities, has also created a breakthrough, bringing clear efficiency to socio-economic activities.
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| Support mechanisms and policies have brought about positive results, contributing to ensuring social security and removing difficulties for businesses. In the photo: Production of rattan and bamboo products for export at Duc Phong Company Limited. Photo: Thu Huyen |
In the 2023-2025 period, Nghe An must have many breakthrough solutions to become a leading province in the region. The banking industry must continue to improve the quality of operations to well implement the restructuring project for the 2021-2025 period, enhance transparency and competitiveness in the region, in the context of facing many risks and challenges as the openness of the Vietnamese economy is increasingly greater.
Therefore, the banking sector needs to make more efforts, continue to innovate its operating methods, strengthen dialogue with businesses and people to grasp, handle and resolve difficulties and obstacles in a timely manner, ensuring the smooth implementation of State policies, contributing to the socio-economic development of the province. Strengthen the State Bank's inspection, examination and supervision of units in the banking sector in the area, promptly detect and strictly correct existing violations, warn and prevent risks, and ensure the building of a safe and healthy environment for the common activities of the sector in the area.
Credit for the economy in the first four months of 2023 increased by 2.75% compared to the end of 2022, promptly meeting the capital needs of the economy. In the coming time, we will focus on solutions to ensure safe and effective credit activities; continue to strictly control credit in areas with potential risks. Based on the economic growth target of about 6.5% in 2023 and inflation of about 4.5% set by the National Assembly and the Government, the State Bank of Vietnam (SBV) targets credit growth in 2023 at about 14-15%, with adjustments appropriate to the actual situation, contributing to macroeconomic stability and supporting economic growth.
