Governor of the State Bank of Vietnam Nguyen Thi Hong: The Government and the State Bank of Vietnam have been very determined in implementing Resolution 43.

Speaking to clarify the opinions of delegates at the Discussion Session on the implementation of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program and the National Assembly's resolutions on a number of important national projects until the end of 2023, Governor of the State Bank of Vietnam Nguyen Thi Hong expressed her high appreciation for the monitoring results of the Monitoring Delegation.

Governor of the State Bank of Vietnam Nguyen Thi Hong speaks at the meeting

Sharing more about the context of the resolution implementation, the Governor said that we implemented Resolution 43 in a very complicated, unpredictable and unprecedented global and domestic economic context, not to mention that right after Resolution 43 was issued, the conflict between Russia and Ukraine occurred; the monetary policy of many countries tightened very quickly and strongly, the difficulties of the real estate market, corporate bonds; the incident of SCB...

“As a member of the Government, I have witnessed the determination of the Prime Minister, Deputy Prime Ministers and Government members in directing and operating to try to implement programs and support to remove difficulties for the economy,” the Governor said.

Reporting to the National Assembly, the Governor also said that, right when discussing this interest rate support policy, in many meetings of the National Assembly Standing Committee, the State Bank also expressed concerns about the interest rate support program. However, the State Bank also understood that the National Assembly Standing Committee was very responsible and wanted to have solutions to support businesses and assigned the Government to study. On the Government side, the members were also very responsible, studying to advise and propose with the mindset of having to implement many policies, to contribute to solving difficulties for businesses.

After Resolution 43 was issued, the Government assigned the State Bank to preside over and coordinate with ministries and branches to develop and advise the Government to issue Decree No. 31/2022/ND-CP. The Governor said that in fact, the State Bank has never spent so much time and effort on organizing and implementing any program. The Prime Minister and Deputy Prime Minister have also closely followed and directly directed the implementation. The State Bank has also organized many conferences and requested the State Bank branches in provinces and cities to deploy to all localities. Ministries and branches have also closely participated in the process of developing the decree as well as participating in practical survey teams in localities.

The Governor said that the State Bank also determined from the beginning that this program is one of the programs in Resolution 43 and this policy is only a support policy for businesses that are able to recover, that is, have the ability to repay loans, not a policy to solve for all businesses in the economy that are still facing difficulties, including those that are not eligible for loans.

“Because the loan capital of this program is capital mobilized by credit institutions from the people, only the 2% interest rate support is from the state budget. Therefore, credit institutions must still make loans according to current legal regulations and must ensure the ability to recover debts,” said the Governor.

Therefore, according to the Governor, the amount of capital that banks receive under the 2% interest rate support policy depends largely on the decisions of businesses as well as credit institutions. The Government's report to the National Assembly also fully and in detail stated many difficulties and limitations as many delegates at the discussion session.

In addition, some comments in the report of the Supervisory Delegation on the reasons for the limited results of the implementation of interest rate support, such as the lack of extensive communication to each customer eligible for interest rate support... The Governor hopes that the Supervisory Delegation and the National Assembly will consider further because in order to implement this program, along with directly organizing conferences to propagate and remove difficulties and obstacles for credit institutions and enterprises in the process of implementing the program, the State Bank has requested the State Bank branches in provinces and cities to coordinate with departments, branches and sectors in provinces, cities and localities to organize conferences to connect enterprises and banks. These conferences all invite the provincial Business Associations and if the Business Association is invited, it will be announced to all members of the Association, so it is impossible for members of the Business Associations not to know.

Besides, the press agencies are also very active and regularly publish the instructions of the Prime Minister, the Government as well as the State Bank and credit institutions so that customers can grasp them.

"The VCCI's business survey report only surveyed 8,000 private enterprises, accounting for less than 10% of enterprises nationwide. The survey was conducted from September 2022 to November 2022, so it cannot be an indication to evaluate an entire program," the Governor added.

Appreciating the opinions of some delegates that in a complex and unprecedented context, policies may not be close to reality, which is understandable. The Governor said that the important thing is what experience we can draw from this about how to support businesses and people to simplify and support state budget money to businesses as quickly as possible.

This program does not mean that businesses will decide to borrow capital just because they are supported with a 2% interest rate. The important thing is that when deciding to borrow, businesses themselves must know what they are borrowing for and whether they are able to repay the debt. Interest is just one of the input costs. “Therefore, we can consider solutions such as taxes or other policies,” the Governor said.

The Governor also said that the interest rate support package is worth 40 trillion VND, with 3.05% disbursement. This program ended on December 31, 2023, and in Report No. 186, the Government reported to the National Assembly to cancel the budget and no longer mobilize resources. At the same time, it will not increase the budget deficit for this capital. In case we continue to mobilize this source, we can create room for the budget in other support programs, and can transfer to the Social Policy Bank to support other goals as many delegates have mentioned...

Source: https://thoibaonganhang.vn/thong-doc-nhnn-nguyen-thi-hongchinh-phu-va-nhnn-da-rat-quyet-liet-trong-trien-khai-nghi-quyet-43-152011.html