Banks to offer credit incentives to save businesses from coronavirus-induced woes
Banks to offer credit incentives to save businesses from coronavirus-induced woes
Vietnamese banks will cut interest rates and stop collecting fees on VND250 trillion ($10.9 billion) worth of credit to stimulate borrowing.
Workers manufacture face masks at a factory in southern Long An Province. Photo by VnExpress/Quynh Tran.
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The move is part of an initiative by the State Bank of Vietnam (SBV) to save businesses from the damage caused by the coronavirus epidemic, according to a government directive issued on Friday.
Nguyen Quoc Hung, director of the SBV’s credit department, said most banks have agreed to lower their interest rates by 0.5-1 percentage point and scrap fees on payments and transfers for businesses affected by the disease.
Of the VND250 trillion, BIDV has registered for VND120 trillion ($5.2 billion), Military Bank for VND35 trillion ($1.5 billion) and Asia Commercial Bank for VND15 trillion ($65 million).
The government has also instructed the Ministry of Finance to reduce tax rates and fees for businesses affected by the disease by VND30 trillion ($1.3 billion).
The directive is a major move by the government to boost the economy as the epidemic has hit several sectors including tourism, aviation and trade.
Vietnam’s GDP growth in 2020 could be a seven-year low of 5.96 percent, according to the Ministry of Planning and Investment.
