Credit institutions required to boost lending programme

Update: May, 22/2017 - 16:00
The State Bank of Việt Nam last week instructed credit institutions to continuously boost the lending programme for market stabilisation. - Photo VNA
Viet Nam News

HÀ NỘI – The State Bank of Việt Nam (SBV) last week instructed credit institutions to continuously boost the lending programme for market stabilisation.

Under Document No. 3522/NHNN-TD, the central bank asked credit institutions to broaden the list of borrowers participating in the programme. The lists cover distributors, traders of subsidised goods, businesses from priority fields and those attending regional connectivity models, as well as value chains, hi-tech applied agriculture and clean farm produce production.

The credit institutions have been told to map out lending programmes with reasonable interest rates to the enterprises besides cutting operation costs and enhancing business performance to be able to further cut the rates.

In addition, they need to revamp and simplify lending procedures while still ensuring safety.

It is also necessary to create favourable conditions and timely remove difficulties so that the enterprises can gain access to loans easily.

The central bank also required credit institutions to combine this programme with the Bank-Business Connectivity Programme to make it more effective.

A close link between producers and traders of goods taking part in the programme must be built to ensure the stabilisation of goods supply and demand sources for the market, the central bank stated.

Under the document, SBV branches in provinces and cities should be proactive in grasping information and consulting provincial and municipal People’s committees on measures to implement the programme efficiently.

They should co-ordinate with local agencies to choose necessary commodities produced domestically with good quality, food safety and reasonable prices to participate in the programme and encourage businesses to join hands.

The lending programme for market stabilisation, which was launched in 2015 and combined with the "Vietnamese people give priority to using Vietnamese products" campaign, is aimed at stabilising the macro economy and controlling inflation according to the Government’s instruction.

With the price stabilisation, especially for necessary goods, the programme has achieved good results, especially in large cities during the country’s year-end holidays.

In Hà Nội alone, which contributes 15-16 per cent to Việt Nam’s total retail sales revenue of goods and services, 11 credit institutions provided loans totalling VNĐ10.3 trillion (US$451.75 million) for businesses participating in the programme last year, according to Hà Nội Industry and Trade Department deputy director Trần Thị Phương Lan.

The programme was implemented throughout the capital last year with more than 12,200 points of sale, 711 of which were based in traditional markets, 379 in supermarkets, 160 in convenience stores, 612 in groceries and 452 in canteens. - VNS