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The State Bank of Vietnam requested banks to continue to reduce interest rates and fees

03/06/2021

On June 3, the State Bank of Vietnam (SBV) issued a written request to credit institutions and foreign bank branches (CIs) to continue implementing solutions solutions to support and remove difficulties for borrowers affected by COVID-19 such as: rescheduling of repayment terms, exemption and reduction of interest, fees, new loans, etc.

Along with that, the SBV requires credit institutions to calculate and cut costs, reduce lending interest rates, restructure debt repayment terms and implement other support measures within the financial capacity of the organization.

Support interest rates, support measures and policies must be publicly announced to people and businesses.

At the same time, credit institutions also need to actively and proactively coordinate with departments, branches, and customers in the area to find out the needs and promptly meet the capital consumption of agricultural products, capital demand for production and business of people and businesses in the area; to prevent slow consumption of agricultural products, interruption of production and supply chains due to inability to access bank credit.

Information dissemination on banking processes, procedures, online services and payment services should also be strengthened and guided specifically.

In addition, credit institutions need to implement solutions to create favorable conditions for bank staff and customers in epidemic areas and medical isolation areas who cannot go to the bank for transactions to both ensure epidemic prevention and meet demand for banking services in the area.

Credit institutions need to take drastic measures to remove difficulties, create conditions to support and remove difficulties for borrowers affected by the pandemic, and proactively handle difficulties and obstacles in the implementation process. For issues arising beyond their authority, it is necessary to promptly report to the State Bank and the People's Committees of provinces and cities for handling.

Particularly for SBV branches in provinces and cities that are implementing isolation and lockdown orders (such as Bac Giang, Bac Ninh, Ho Chi Minh City, etc.): credit institutions need to urgently review and assess the difficulties and damage caused by COVID-19. On that basis, proactively take specific solutions to remove difficulties for customers affected by the pandemic.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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