500,000 billion VND credit package: Banks are ready

Many banks are ready to participate in the VND500,000 billion credit package. In the photo: Customers transact at Vietcombank - Binh Duong Branch

Timely credit package

After the meeting with Deputy Prime Minister Ho Duc Phoc last April, the State Bank of Vietnam (SBV) recently held a meeting with commercial banks (CBs) to implement a credit package of 500,000 billion VND to ensure efficiency and substance. Accordingly, banks with large capital potential such as Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Industry and Trade of Vietnam (Vietinbank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Bank for Agriculture and Rural Development of Vietnam ( Agribank ), Military Commercial Joint Stock Bank (MB), International Commercial Joint Stock Bank (VIB) ... are ready to participate in this large-scale credit package.

Currently, banks are participating in financing many key national infrastructure projects. Specifically, Vietcombank has participated in financing the Lao Cai - Vinh Yen power transmission line project, Nhon Trach 3 and 4 power plants, and Long Thanh international airport. Meanwhile, VIB finances infrastructure, production, and power transmission projects; most recently, it participated in financing part of the 500kV power line project. VIB representative said that the bank is ready to deploy a credit package of VND5,000-10,000 billion with preferential loan interest rates, about 1% lower than the normal level, to accompany the State's key policies.

Ms. Phung Thi Binh, Deputy General Director of Agribank, affirmed that the bank is ready to support enterprises, especially in terms of interest rates, but needs to be clear about the responsibilities in lending so that banks can confidently implement. According to Mr. Le Quang Vinh, General Director of Vietcombank, the banking industry has identified credit as an effective support tool for enterprises. However, in order for banks to participate in supporting enterprises, especially those transforming technology and innovating, it is necessary to consider building a mechanism for capital contribution and benefit sharing, instead of applying traditional lending methods.

In addition to being ready to lend capital to the above-mentioned priority customers, banks are also proactively having policies to support customers affected by the new tax policy of the US Government. For businesses that are greatly affected by this tax policy, some banks recommend having a debt restructuring mechanism, maintaining the debt group, and simultaneously reducing interest rates and fees to share the difficulties with customers.

Branch leaders of banks in Binh Duong such as Vietcombank, VietinBank, BIDV, Agribank, MB said that the branches are currently waiting for specific instructions from the headquarters to implement the policy to businesses and borrowers in need of credit capital.

Joint implementation

According to bank leaders, investment in infrastructure is one of the driving forces to achieve the 16% credit growth target of the entire banking industry in general and of banks in particular in 2025.

Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, said that this is a credit package with a preferential mechanism with a minimum term of 2 years. The capital is not taken from the State budget or foreign sources but is completely mobilized by commercial banks and self-balanced by reducing costs, interest rates and extending loan terms. To date, 21 commercial banks have registered to participate with a limit of 500,000 billion VND, equivalent to about 20 billion USD, to support investment in infrastructure development and digital technology, two key areas in the sustainable development strategy of the national economy. Specifically, 4 state-owned commercial banks registered 60,000 billion VND each, 12 large-scale private banks registered 20,000 billion VND each, and 5 smaller banks registered 4,000 billion VND each. “In particular, infrastructure lending is often a large-scale capital project, so commercial banks must jointly finance it, not just one bank. Currently, there are many large national-scale projects, not to mention other projects that are in dire need of investment resources,” said Mr. Dao Minh Tu.

According to the SBV leader, investment in infrastructure and digital technology is fundamental and decisive in achieving the double-digit growth target set by the Government this year. However, there are two issues that need to be raised: compared to other credit packages, this VND500,000 billion package has two characteristics: First, preferential loans have been granted, regardless of the amount of incentives, the subjects that need investment and preferential loans must be clearly identified to concentrate resources. Second, in the field of digital technology, choosing the right components and projects that need investment is also an urgent requirement.

The second factor is that infrastructure deployment always takes a long time, 5 years, 10 years, while commercial banks mainly mobilize short-term capital. Therefore, there must be a structure and calculation to ensure a plan for capital supply and reasonable use of capital, while ensuring the safety of the credit system. On the other hand, there must be coordination with relevant ministries and branches, including the Ministry of Industry and Trade, the Ministry of Construction, the Ministry of Science and Technology to clarify the subjects of the same components, fields or projects that need support from this package.

We are working directly with ministries such as the Ministry of Industry and Trade, the Ministry of Construction, the Ministry of Science and Technology, etc. to determine the specific list of projects and preferential loan recipients in accordance with the Government's requirements. In the coming days, the banking sector will implement the credit package according to the set schedule and direction."

(Mr. Dao Minh Tu, Deputy Governor of the State Bank)

THANH HONG

Source: https://baobinhduong.vn/goi-tin-dung-500-000-ty-dong-cac-ngan-hang-da-san-sang-a347654.html