HCMC – Many actions have been taken, including an amendment to the lending procedures and policies, to remove difficulties in loan disbursement from the financial aid package with an interest rate discount of two percentage points.
The National Assembly Economic Committee held the Vietnam Socio-Economic Forum 2022 on September 18, confirming the VND40-trillion economic recovery stimulus package as the key goal of the banking system in 2022 and discussing how to remove the bottlenecks and speed up the loan disbursement.
The State Bank of Vietnam (SBV), the central bank, has written to the Government proposing the promulgation of Decree 31/2022 and Circular 03/2022, guiding commercial banks to disburse loans to borrowers.
It has collected registration information from commercial banks and suggested the relevant ministries and departments allocate a budget of VND40 trillion within two years.
It is expected to allocate around VND16 trillion in 2022 and VND24 trillion in 2023.
After allocating the budget, the SBV will issue guidelines for commercial banks to solve over 20 problems possibly arising in the implementation process, such as choosing beneficiaries, registering, making preliminary estimates and disbursing loans.
“The SBV proposed holding more conferences to provide information about the loan interest support package to companies, cooperatives and business households,” Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said at the forum.
To tackle difficulties in identifying suitable borrowers and their ability to repay the loans, the SBV suggested that customers provide information to prove their eligibility for the loans themselves.
After that, commercial banks will decide whether they are suitable beneficiaries of the financial aid.
The central bank will establish interdisciplinary groups to investigate the implementation of financial aid in localities and commercial banks to identify and solve problems as soon as possible.
The administrative procedures and policies will be properly amended to make life easier for businesses to access the loan interest support.
The aid package with an interest rate discount of two percentage points for businesses has been disbursed far slower than expected. The loans taken out under this program have totaled just VND4.1 trillion, or roughly 10% of the total planned value, benefiting only 550 entities three months after implementation.