Government approves 4% interest subsidy
The deputy director of a joint-stock bank said that after hearing about the new decision, he asked a staff to call the central bank to inquire about the interest rate subsidy mechanism. The bank was told to wait for the detailed guidelines from the central bank.
Other bankers also said that they were still waiting for instructions from SBV about how to receive the applications for the interest rate subsidy and how to provide preferential loans for businesses.
According to Huynh Song Hao, Deputy Director of the HCM City branch of Vietcombank, in the interest rate subsidy programme, banks will give loans to businesses at low interest rates first (4% lower than normal interest rates), and will receive the difference from the State Bank later.
However, a question has been raised: What will happen if SBV does not accept the business plans of some enterprises and refuses to pay the interest rate difference in certain cases?
“Commercial banks may have different viewpoints on providing loans, while the viewpoints may be different between commercial banks and the central bank. Therefore, we still have to wait for the instructions from the central bank about the eligibility criteria for the interest rate subsidy programme,” Hao said.
Nguyen Thi Tam, Deputy General Director of Techcombank, said that in this case, her bank will have to sign agreements with enterprises in advance about this issue. The bank will provide loans for enterprises, but if the central bank later says it does not agree with the loan project, the enterprises will not be able to get the money.
Tam said that the bank is awaiting guidelines from the central bank, and then will hold a meeting during which it will introduce the requirements for the loans to businesses.
Tam added that exporters will be prioritised for loans.
Nguyen Quoc Sy, Deputy General Director of the Mien Tay Bank, applauded the government’s interest rate subsidy, but said it should set credit limits for private-run and state-owned enterprises. This will allow businesses which really need support to receive the preferential capital.
Most bankers have applauded the policy as it will help them retain clients, while they could get profit if clients’ businesses thrive.
Meanwhile, the chairman of the Viet Nam Association of Seafood Exporters and Producers (VASEP), stressed that businesses need to receive loans under the interest rate subsidy scheme through simple and transparent procedures.
The central bank plans to have a meeting with representatives of banks in the south on Wednesday, February 4, and with banks in the north on February 5 to introduce the decision on the interest rate subsidy for businesses. (VNE)
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