Increase capital absorption capacity for the economy

To increase the capital absorption capacity of the economy , the banking sector has been strengthening capital mobilization and credit expansion solutions, diversifying lending products, directing credit to production, business and priority sectors. At the same time, implementing credit policies and preferential loan packages, promptly meeting capital needs, supporting people and businesses to overcome difficulties, restore production and business and promote socio-economic growth of the province.

Right at the beginning of the new spring, Agribank Vinh Phuc branch has deployed many loan packages with preferential interest rates, supporting business customers to develop production. Photo: Chu Kieu

Currently, not only people and businesses but also credit institutions (CIs) are facing many difficulties when facing many big risks such as increasing bad debt, decreasing profits...

Increasing the capital absorption capacity of the economy not only saves businesses but also saves credit institutions. Therefore, in recent times, credit institutions in the area have made efforts to reduce interest rates and have proposed many solutions to increase the capital absorption capacity of the economy.

In 2023, credit institutions have adjusted deposit interest rates down by 0.2 - 1.5%/year for all terms. Reduce operating costs to reduce lending interest rates, especially reducing interest rates for existing outstanding loans and new loans, thereby supporting people and businesses to recover and develop production and business.

Currently, the average lending interest rate for priority sectors is generally from 4 - 4.5%/year for short term; from 7 - 8% for medium and long term. The average lending interest rate for normal production and business sectors is from 7 - 7.5%/year for short term; from 9.5 - 11%/year for medium and long term.

In addition, to support and remove difficulties for production and business activities, in 2023, credit institutions in the area will promote debt restructuring and maintain the debt group according to Circular No. 02/2023 of the State Bank of Vietnam . The total value of debt with restructured repayment terms reached 98 billion VND.

To meet the demand for loans with preferential interest rates for people and businesses, credit institutions have done a good job of mobilizing resources, balancing capital sources, directing credit to production, business, and priority sectors according to the Government's policy; lending to serve living needs, consumer credit with reasonable interest rates; promptly implementing preferential credit policies, support for businesses, lending programs for poor households and policy beneficiaries...

At the same time, promoting administrative reform to facilitate and shorten transaction time for customers in loan appraisal and approval, loan disbursement... improving credit access for people and businesses.

According to the representative of the Bank for Agriculture and Rural Development, Vinh Phuc branch (Agribank Vinh Phuc): Accompanying and supporting people and businesses, effectively implementing the program of socio-economic recovery and development of the province, Agribank Vinh Phuc has strengthened information and propaganda work to help people and businesses grasp the mechanisms and policies related to Agribank credit activities.

Fully and promptly implement policies such as restructuring debt repayment terms, considering exemption and reduction of loan interest, continuing to provide new loans, etc. to support customers affected by the epidemic to restore production and business activities.

In 2023, Agribank Vinh Phuc has adjusted lending interest rates 8 times under the direction of Agribank Vietnam. As a result, lending interest rates have decreased by 1.5 - 5%/year compared to the beginning of 2023.

To increase access to loans for customers, Agribank also implements many preferential loan programs and packages such as loans for large enterprises, small and medium enterprises, export enterprises; agriculture - forestry - fishery sector; interest rate support program according to Decree No. 31 of the Government; social housing loan program according to Resolution 33 of the Government; loans to support individuals receiving budget salaries; loans to support medical staff, etc.

Synchronously implementing solutions to support economic recovery and growth, in 2023, the banking industry has stabilized the monetary market; accompanied and supported many businesses and production and business households to overcome difficulties.

Currently, the total outstanding loans of credit institutions in the province have reached over 128 trillion VND. Outstanding loans are mainly focused on production and business activities, services and development investment, accounting for over 86% of the total outstanding loans; the rest are loans for capital needs for living and outstanding loans in other areas.

To achieve the goal of restoring growth, contributing to solving difficulties for people, businesses and the economy, the State Bank of Vietnam provincial branch directed credit institutions in the province to continue to closely follow the socio-economic development orientation of the province and the direction of the superior bank, flexibly applying policy mechanisms to bring loans to customers.

Effectively implement activities to support businesses and people in reducing lending interest rates; restructure debt, maintain debt groups; focus credit on production and business sectors, priority sectors, socio-economic recovery and development programs and national target programs.

At the same time, diversify banking products and services, simplify administrative procedures, and promote digitalization in banking operations to create the most favorable conditions for customers to access and borrow capital.

Tran Tinh

Source