Credit institutions in Quang Nam stimulate demand, push capital into the economy

Quang Nam commercial banks are pumping capital into the economy. Photo: Q.VIET

Putting capital into the economy

Commercial banks in the province are rushing to complete credit growth targets.

Ms. Vu Thi To Nga - Director of BIDV Quang Nam said that the bank is urgently implementing short-term, medium-term and long-term credit packages to serve production and business, housing needs, car purchases, and the living needs of people and businesses.

BIDV Quang Nam is implementing medium and long-term loans for individual customers secured by real estate, production and business... with a loan interest rate of 6%/year in the first 6 or 12 months from the time of first disbursement.

BIDV is implementing a green credit package for individual customers to borrow capital to serve their living needs, secured by real estate, production and business, etc., with a loan interest rate 0.5%/year lower than the average.

With the short-term credit package, BIDV Quang Nam targets individual customers who need additional working capital for production and business; lending interest rate is 3.9%/year for terms under 3 months, 4.4%/year for terms from 3 months to under 6 months, lending interest rate is 4.8%/year for terms from 6 months to under 9 months...

As of November 19, BIDV Quang Nam's credit balance reached VND10,518 billion (up 20.6% compared to the beginning of the year). BIDV Quang Nam seriously implemented the management of deposit and lending interest rates in accordance with the direction of the State Bank of Vietnam, Quang Nam branch.

The unit shares difficulties with businesses and people, supports customers to reduce capital costs. BIDV Quang Nam deploys many credit packages to support retail customers, FDI customers, SMEs customers, large and long-term customers.

Mr. Nguyen Dinh Khanh - Director of Loc Phat Bank, Quang Nam branch, said that the unit is accelerating lending to strive to achieve the credit target for 2024. This bank is implementing the program "Supporting loan capital - interest rates in hand" lasting until December 31.

The highlight of the program is the preferential loan interest rate. For businesses borrowing capital in VND, the loan interest rate is only from 6%/year; for businesses needing to borrow USD, the preferential loan interest rate is only from 5%/year. The bank streamlines processes and procedures to help businesses access capital quickly and easily.

According to Mr. Khanh, Loc Phat Bank Quang Nam branch facilitates businesses to access preferential loans to expand production and business at the end of the year and during Tet. Up to now, the unit's outstanding debt has reached nearly 2,000 billion VND.

For sustainable credit growth

Outstanding loans of credit institutions in the area increased mainly in the first 4 months of the year, however the growth rate was at an average level, then continuously decreased and started to accelerate in October.

Customers access low-interest loan packages from credit institutions. Photo: Q.VIET

Outstanding loans of commercial banks in Quang Nam to date have reached VND109,147 billion (up 2.14% compared to the beginning of the year, reaching 88.89% of the annual plan target), most banks have not met the credit targets registered with the State Bank of Vietnam, Quang Nam branch.

Mr. Pham Trong - Director of the State Bank of Vietnam, Quang Nam branch, said that bank credit activities in the area have well met the capital needs of businesses and people to maintain and develop production, business, trade and services, contributing to promoting socio-economic growth.

Commercial banks have applied low interest rates, preferential credit, and debt restructuring to directly support businesses and people in developing production and business, especially at the end of the year and during Tet.

However, it is worth mentioning that this year, the bad debt situation at credit institutions has been very complicated. There was a time in April when the bad debt ratio was very high, reaching 3.99% of total outstanding loans.

To date, bad debt at commercial banks in the area is VND2,251 billion (2.06% of total outstanding debt, up 44.86% compared to the beginning of the year). Notably, group 5 bad debt currently accounts for 1.3% of total outstanding debt, group 4 is 0.53%, group 3 is 0.26%.

Mr. Pham Trong said that in the context of businesses “thirsty” for capital to develop production and business at the end of the year and during Tet, credit institutions need to review and be more flexible in lending conditions along with risk control. Loosening lending is necessary but must be strict, avoiding potential bad debts in the future that pose risks to the banking system.

“Credit institutions need to lower lending interest rates to the lowest possible level, streamline processes, and speed up credit approval for businesses, but cannot risk granting credit to limit bad debt. Businesses must have transparent and professional financial information, taxes, revenue, profits, and accounting records to easily access new capital to meet capital mobilization needs,” said Mr. Trong.

According to financial experts, the 30,000 billion VND package for forestry and fishery loans is considered a boost for development when the interest rate is 1-2% lower per year than the average lending rate. However, commercial banks in Quang Nam have not yet disbursed this package. As for the 120,000 billion VND social housing loan program, Quang Nam has 3 approved projects, but all projects have problems, so there has not been any outstanding loan balance from commercial banks.

Source: https://baoquangnam.vn/to-chuc-tin-dung-o-quang-nam-kich-cau-day-von-vao-nen-kinh-te-3144834.html