Sharp reduction in lending rates
Since the beginning of the year, the State Bank has adjusted the operating interest rates four times by 0.5-2.0%/year to reduce the market lending interest rate and increase the economy's access to capital. At the same time, the State Bank has created conditions for credit institutions to reduce lending interest rates, contributing to increasing social investment, supporting production, economic growth and job creation.
Credit institutions are also constantly implementing solutions to support and push capital into the economy through preferential loan packages and faster, more convenient loan procedures. As a leading state-owned commercial bank, Agribank has implemented the direction of the State Bank, implementing many solutions to support the economy to overcome difficulties, striving to do business safely and effectively, and reducing lending interest rates to support people and businesses.
Since the beginning of the year, based on cost reduction and deposit interest rate reduction, Agribank has adjusted lending interest rates down 5 times. Accordingly, the bank has reduced interest rates by 1.3 - 2.5%/year for the production and business sector; 2 - 3%/year for the consumption sector; 3 - 4%/year for the real estate business sector...
It is estimated that Agribank will save more than 1,000 billion VND to reduce lending interest rates, supporting 2.2 million customers.
A bank representative said: “With the current lending interest rate, Agribank wishes to share difficulties, support people and businesses to optimize loan costs, promptly supplement capital to restructure operations... Although banking activities also face many difficulties due to the impact of the economy, Agribank accepts to cut profits, is willing to share difficulties, and accompany people, businesses and the economy.”
Synchronously deploy solutions to support the economy
On July 15, 2023, the Government issued Resolution 105/NQ-CP on tasks and solutions to remove difficulties for production and business, continue to promote administrative procedure reform, and tighten discipline. One of the key tasks and solutions is to support cash flow, reduce costs, and increase access to capital for businesses and people.
To increase access to credit capital for customers, especially people in remote areas, and at the same time limit illegal credit, since 2019, Agribank has implemented a consumer credit program with a scale of 5,000 billion VND, lending a maximum of 30 million VND without collateral. To date, the program's turnover has far exceeded its scale, reaching more than 76,000 billion VND with more than 834,000 borrowers, with outstanding loans of 1,617 billion VND with nearly 82,000 customers.
In addition to interest rate reduction solutions, in 2023, Agribank will simultaneously implement many preferential credit policies and programs for many customer groups. Specifically, the policy of restructuring debt repayment terms and maintaining debt groups according to Circular 02 of the State Bank has so far restructured debts for more than 3,700 customers with a total outstanding debt of VND 33,607 billion.
Implementing interest rate support from the State budget according to Decree 31, Agribank has supported interest rates for 829 customers; loan turnover of VND 13,312 billion, outstanding debt of VND 4,564 billion, interest rate support amount of VND 77 billion.
In addition, to support customers in paying bad debts and debts that have been handled for risks during the recovery period after the Covid-19 pandemic, Agribank does not apply overdue penalty interest, late payment interest, and other fees from the date of overdue debt to the date the customer makes repayment.
Low-interest credit programs are actively implemented by Agribank with a scale of nearly 10,000 billion VND, with diverse subjects such as: preferential credit programs for the forestry and fishery sector, import-export customers, small and medium enterprises, large enterprises, social housing, officials receiving salaries from the State budget, health sector staff, etc.
Regarding the preferential credit program for social housing loans under Resolution 33/NQ-CP, up to now, Agribank has approved 2 social housing projects with an approved amount of VND 1,000 billion, outstanding loans of VND 78 billion. Agribank also reduces interest rates by up to 3% for customers borrowing capital for the purpose of real estate business with difficulties and outstanding loans from January 31, 2023 to December 31, 2024.
In the coming time, Agribank will continue to effectively implement support policies, increase access to capital for people and businesses according to the direction of the Government and the State Bank; strive to reduce costs, continue to reduce input interest rates to reduce lending interest rates; at the same time, diversify credit products suitable for customer groups, according to each industry, field and location.
Thanh Ngoc
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