Mr. Le Viet Sy, Deputy Director of the State Bank of Vietnam, Provincial Branch

Could you provide an overview of the banking in the province since early this year?

Over the past time, the banking has grown, but this growth rate was very low against every year. Even in the first months of the year, the credit growth was negative. The above overview presents the banking with many difficulties and challenges in fulfilling the planned target of credit growth, bad debt settlement...

The slow credit growth was unavoidable, but what policies has the banking developed to support customers in alleviating difficulties caused by the COVID-19 pandemic?

Sharing difficulties, accompanying enterprises are a consistent policy of the banking not only in the past few months but also since the implementation of the 2014 Banking-Enterprise Connection Program.

As regards the policy of restructuring the debt repayment term alone, the whole province had 771 customers. Among them, 108 enterprises were restructured in debt repayment term; the restructured debt balance was 927 billion dong. 2,157 customers enjoyed the exemption and reduction of interest, the interest rate reduction with the debt balance of 2,530 billion, and the interest amount exempted or reduced of 4.6 billion.

In addition, 1,375 customers were given new loans to restore production, with loan sales of VND 5,716 billion from the pandemic announcement to July 17, 2020. The lower interest rates are largely from 0,5% - 2.5% per year against the pre-pandemic period, and the current debt balance are 3,961 billion dong.

According to many enterprises, the support policies of the bank have not really brought efficiency into play; the access to loans is not easy. What do you think about this?

The banks are also enterprises and not outside the negative impact of the COVID-19 pandemic. The capital source for implementing the preferential policies and solutions to support customers hit by the COVID-19 pandemic in the banking in general and in the locality in particular, is not from the State budget, but from the mobilized deposits, especially from operation cost reduction, including the partial cut in salary and employee bonuses.

From there, the resources are focused on reducing the loan interest rate for the current debt balance and new loans from customers. Therefore, it is understandable that they also have regulations, considerations for the lending sources.

However, the banking is striving to provide sufficient credit for the economy, support enterprises in overcoming difficulties under the influence of pandemic. Therefore, the bank must ensure that customers use capital sources effectively, in accordance with the subjects ... and will not lower the loan conditions and criteria in order to keep the system safe, prevent the policy exploitation for profiteering, the wrong reflection of credit quality and the long-term consequences for the economy.

Recently, some enterprises have reported that they could not access concessional loans largely because the enterprises had no feasible business plans, no equity capital and could not prove their capacity for debt repayment and so on. Therefore, in order to access the preferential capital, enterprises need to develop feasible plans to restore production and business.

In your opinion, what are the difficulties the banking has to encounter in the coming time?

The assurance of credit growth targets, the reduction of interest rates and bad debts will be the "barrier" to the banking in the coming time.

What solutions has the State Bank offered for operating in order to give maximum support to the enterprises facing difficulties in the coming time, sir?

The provincial banking clearly states that the effective implementation of solutions for supporting customers hit by the COVID-19 pandemic is the top task throughout 2020.

Accordingly, the State Bank will continue to direct the credit institutions to effectively implement the solutions for removing difficulties for customers hit by the COVID-19 pandemic. Besides, it will coordinate with the departments, branches, local authorities to promptly handle the recommendations and proposals put forward by enterprises.

Currently, the pandemic situation remains complicated, the provincial banking continues to follow the development of the pandemic, regularly monitor the impact of the COVID-19 pandemic on the economy in general and enterprises in particular. It continues to accompany and support the enterprises and individuals in the province.

Difficulties notwithstanding, there will also be opportunities in development. In your opinion, what is seen as the opportunity for the banking in the current pandemic situation?

The highlight of the banking during the outbreak of pandemic is to anticipate the opportunity for changing customers' awareness, habits and behavior of non-cash payment. In the first months of the year, the amount and value of payment via cards, online banks or mobile phones all rose sharply, along with many new products with many utilities applied...

To date, the province has had 239 ATMs and 1,917 POS / EFTPOS / EDC machines in operation with 2,409 card-accepting units. Card-accepting devices are distributed in many locations. Accommodation establishments, hotels accounts for nearly 26%; supermarkets, trade centers, modern distribution facilities, over 20%; hospitals, schools, over 1%, customer locations, nearly 53%.

Thank you, sir!

By HOÀNG LOAN