Positive effects from a credit policy

(Baonghean)After 2 weeks of implementing the policy of adjusting the interest rate reduction of old loans to a maximum of 15%/year, following the direction of the Governor of the State Bank, major commercial banks in the province such as Vietcombank, Cong Thuong, Dau Tu, Nong Nghiep... have quickly reduced interest rates for customers.

When we approached to learn about this issue, Mr. Phan Viet Phong - Deputy Director of Vietcombank Trung Do branch affirmed: All contracts arising and old loans at Vietcombank Trung Do were transferred to a maximum of 15%/year from July 13, 2012. There are 59 businesses with outstanding debt of 180 billion VND and 108 individual customers with outstanding debt of 30 billion VND, all of which have been adjusted to an interest rate of 15%/year. The Branch's old debt accounts for about 30%, all of which have been adjusted to an interest rate of 15%, the remaining 60% of customers who borrowed later have enjoyed an interest rate lower than 15% since June 1, 2012". Before implementing the State Bank Governor's directive on the maximum lending interest rate of 15%/year for old loans, on June 1, 2012, Vietcombank Trung Do Branch lent to small and medium enterprises at an interest rate of 13.5%/year, by June 11, the normal lending rate was 14%/year, and the small and medium enterprises was 12.5%/year. Then, by July 13, the normal lending interest rate was 13%/year, and the lending rate for small and medium enterprises was 11.5%/year. In the structure of the bank, 90% of revenue comes from credit, reducing interest rates will greatly affect profits, but this is also an opportunity to demonstrate the responsibility of the bank. Vietcombank shares profits with the social community, specifically businesses.



Lower interest rates on old loans - practical support for businesses.

Ms. Le Thi Ly - Head of Risk Management Department of Nghe An Investment and Development Joint Stock Commercial Bank said: With the tradition of a large commercial bank that is always a pioneer in lowering interest rates for customers, we urgently implemented credit solutions to support and remove difficulties for businesses and individuals borrowing capital from the bank, adjusting the interest rates of all short, medium and long-term terms to 15%/year for 100% of businesses and households. Particularly for customers borrowing for consumption, securities and real estate, the interest rate was not adjusted down. With 317 businesses and individuals borrowing capital with outstanding debt of VND 1,334 billion, the interest rate was adjusted down to 15%/year. The old loan contracts fluctuated at an interest rate of 16% - 18%/year, now adjusted down to 15%/year, thus the Nghe An Investment and Development Bank Branch will lose more than 2.4 billion VND in interest/month.

Mr. Le Thanh Phong - Deputy Director of the Vietnam Bank for Industry and Trade, Ben Thuy branch also confirmed: All corporate customers, business households and even consumer loans in old contracts will be reduced to 15%/year interest rate. When there was a policy of the Vietnam Bank for Industry and Trade, Ben Thuy branch immediately directed the Customer Service Department and Transaction Office to automatically adjust the interest rate down for all customers on July 15, 2012. Maybe, there are customers who do not know that their interest rate has been reduced because it is not the time to pay interest, but next month when they pay interest, they will see that their interest rate has been adjusted down from July 15. Currently, the outstanding debt of the Vietnam Bank for Industry and Trade, Ben Thuy is nearly 1,500 billion VND, with loan interest rates from 12.5% ​​- 15%/year. Of which, about 60% - 70% of old contracts with loan interest rates above 15%/year are now adjusted to below 15% and 15%/year. For customer groups in priority sectors including: agriculture, rural areas, export, small and medium enterprises, supporting industries are given loans with interest rates of 12-13%/year. Many businesses are given loans with low interest rates such as Hoang Thi Loan Textile, Trung Do Joint Stock Company, Northern Industrial and Construction Trading Joint Stock Company, Central Construction Materials Joint Stock Company...

Ms. Vo Thi Hung - Head of Accounting Department of Hanoi Housing Investment and Development Joint Stock Company No. 30 said: "Our company regularly borrows capital from Nghe An Investment and Development Bank from 15 to 17 billion VND, previously the loan interest rate was 17% - 19%/year, the monthly interest payment alone was about 250 million VND. Now the bank has adjusted the company's interest rate down to 15%/year, so we will reduce the interest payment cost by more than 40 million VND/month. In the context of the real estate market being sluggish and difficult to sell, construction enterprises like us are facing extremely difficult times, reducing the loan interest cost is one of the practical solutions to save the business".

Ms. Nguyen Thi Bich Thu - Chief Accountant of Toyota Vinh Joint Stock Company said: "Our business usually requires a large amount of capital in a short time to buy cars for temporary storage to serve customers' needs, on average, we borrow about 20 billion VND per month from Vietcombank Trung Do Bank. At the beginning of 2012, if we borrowed 20 billion VND with an interest rate of 18%/year, the interest payment cost was 300 million VND/month". Currently, we have received preferential adjustment from the Bank to reduce the loan interest rate to 10%/year, the interest rate is only 160 million VND/month, reducing the interest by 140 million VND/month.

Mr. Nguyen Huy Hoang in Block 6, Nghi Tan Ward - Cua Lo Town confided: "My family specializes in processing frozen seafood, domestic consumption and export to China. To invest in warehouses for storage and product purchasing, in addition to my own capital, I have to borrow nearly 2 billion VND from Nghe An Investment and Development Bank every month. In early 2012, the loan interest rate was 16% - 17%/year, now it has been adjusted to a low interest rate, my family is very excited because we have reduced input costs, lowered product prices to make it easier to compete in the market."

Thus, the bank has made efforts to accompany customers, the remaining problem is how businesses can have effective production and business plans!

Quynh Lan