Banks asked to cut lending rates to mitigate Covid 19 pandemic
Banks asked to cut lending rates to mitigate Covid 19 pandemic
Deputy Governor of the State Bank of Viet Nam (SBV) Dao Minh Tu has instructed commercial banks to continue reducing lending rates for firms affected by COVID-19 by 2 percentage points per year. 
The banking industry played an important role in the economy so these solutions would have direct impacts, Tu said during an online meeting on Tuesday.
Tu also directed banks to implement support measures such as debt rescheduling to help firms maintain production and business.
It is estimated there is VND926 trillion (US$39.85 billion) in outstanding debt affected by the pandemic that will not be paid as scheduled, accounting for more than 11 per cent of total outstanding loans.
Banks are also facing difficulties this year due to the economic slowdown, so Tu asked them to cut operational costs and reduce deposit interest rates in order to boost lending.
In addition, he said banks must continue to review their customers' business and production as well as outstanding loans damaged by the pandemic and report to the central bank for consideration.
Despite the Government’s 15-day nationwide social distancing order, starting from April 1, commercial banks will still meet all essential transactions of enterprises and individuals in the coming days.
According to Tu, banks would provide essential services and ensure the continuous operation of online banking services and ATMs.
