On the morning of May 25, continuing the working program of the 5th Session, the National Assembly discussed the results of socio -economic development and budget, practicing thrift, fighting waste in 2022, and the plan for 2023.
Assessing the economy in general, delegate Tran Van Lam - Standing Member of the Finance and Budget Committee said that the difficulties are increasing, reflected in the growth rate in the first quarter of 2023 at only 3.32%. With this rate, achieving the growth target of 6 - 6.5% this year is a challenge, which requires a great effort for the rest of 2023.
Pointing out the difficulties in the first quarter of 2023, Mr. Lam said that the most prominent were the difficulties in business production. Therefore, the number of businesses returning to operation decreased, while those temporarily suspended increased. Along with that, the corporate bond market and real estate faced cash flow difficulties, and the implementation of 3 national target programs was ineffective...
Despite the difficulties, Mr. Lam emphasized that we cannot be hasty because of low growth at the beginning of the year and launch overly loose financial policies. Because if we increase the money supply for bank loans and credit, it will immediately push up the inflation rate. High inflation immediately leads to high interest rates, which in turn leads to high lending, at which point businesses cannot borrow money to reproduce.
“The key is to maintain macroeconomic stability and keep inflation at an appropriate level,” said Mr. Lam.
National Assembly Delegate Tran Van Lam - Standing Member of the Finance and Budget Committee.
Regarding the solution to monetary policy, Mr. Lam said that we must find a way for businesses to access cash flow. In fact, businesses are currently having difficulty accessing capital because interest rates are still high.
"In the context of our stable inflation, high bank interest rates are unreasonable. We are currently adjusting, but this adjustment is still small. In fact, there is information that when businesses want to borrow, the interest rate is still over 13%. With this interest rate, where do businesses make a profit?", Mr. Lam asked.
To reduce interest rates, according to Mr. Tran Van Lam, it is necessary to maintain a stable macro economy with relatively low inflation, followed by reducing banking costs.
"That means the difference between lending and borrowing interest rates must be at a reasonable level. In fact, recently, businesses have been facing difficulties, but banks still reported huge profits. Why is this happening? Because the difference between lending and borrowing interest rates is large," said Mr. Lam.
Citing the recent report on monitoring resources for Covid-19 prevention, Mr. Lam said that "during the Covid-19 pandemic, borrowing interest rates decreased but decreased more slowly than lending interest rates." This means that banks "earned more".
From there, the delegate said that the interests of banks must be truly linked to the economy, to the survival of businesses, not "one market, one monopoly".
Delegate Tran Van Khai, Ha Nam delegation.
Delegate Tran Van Khai (Ha Nam delegation) also said that in the economic recession, people and businesses are facing difficulties, but banks are offering very high interest rates. It is worth mentioning that in addition to high interest rates, there is also the matter of "forcing" people and businesses to buy insurance.
"According to my research, each bank earns tens of thousands of billions from selling insurance. Their condition is that if you want to borrow, you have to buy insurance. If you don't buy insurance, you won't disburse or lend. Who is responsible for this situation?", Mr. Khai said.
At a meeting with ministries and several state-owned commercial banks on solutions to improve access to capital and reduce interest rates on the afternoon of May 24, Deputy Prime Minister Le Minh Khai emphasized that banks and businesses "must go the same way".
However, banks are particularly important institutions, so they must ensure the safety of the system; the operation of the monetary market must also comply with market rules...
The Deputy Prime Minister requested the State Bank and the banking system to continue implementing solutions to reduce operating costs and lower deposit interest rates to establish a reasonable interest rate level to support businesses in accessing capital, overcoming difficulties, and developing production and business .
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