More than 1,000 billion VND has been committed to lending as part of a 120,000 billion VND credit package.

DNHN - Agribank has committed 950 billion VND to 1 social housing project in Quang Ninh and is in discussions with nearly 10 other projects. While BIDV has financed a project in Phu Tho with a credit of approximately VND 95 billion, the project is sponsored

At the seminar "Increasing capital absorption for Businesses" hosted by the Banking Times on July 25, Ms. Ha Thu Giang - Director of the Credit Department for Economic Sectors (SBV) - stated that numerous solutions exist to eliminate credit issues in the real estate industry.

In particular, the State Bank has directed credit institutions (CIs) to facilitate access to credit for real estate project investors, construction contractors, and homebuyers through the implementation of a VND 120,000 billion credit package.

This is a credit package from the capital of commercial banks with a lower lending rate of 1.5-2% than the average lending rate of banks on the market, for investors, buyers of social housing, worker housing, and renovation and reconstruction projects of old apartments.

Ms. Ha Thu Giang disclosed that BIDV has signed a credit contract to finance a social housing project in Phu Tho province with a credit amount of approximately 95 billion VND; Agribank has committed to lend to 1 project in Quang Ninh with a loan amount of 950 billion VND and is approaching approximately 10 projects in Ho Chi Minh City. Ho Chi Minh, Quy Nhon, Ha Nam, Lam Dong...

For other fields, the State Bank recently directed commercial banks to implement a loan program for forest and fishery products with a scale of VND 15,000 billion (higher than expected at VND 10,000 billion) from the commercial banks' resources, with a lending interest rate in Vietnam dong that is at least 1-2% per year lower than the average lending interest rate for the same term of the bank.

In addition, the State Bank has issued a document directing credit institutions to allocate capital to meet production and business needs in several key agricultural sectors, including rice, coffee, and cotton.

Regarding interest rate support policies, the Director of Credit Department for Economic Sectors stated that by the end of June 2023, sales of interest rate support had reached approximately VND 140,000 billion and outstanding loans had reached over VND 56,000 billion for approximately 2,100 customers.

In addition to commercial credit, the Bank for Social Policies (VBSP) continues to facilitate and promote policy credit programs. By June 30, 2023, the total outstanding policy credit at VBSP reached VND 304,431 billion, an increase of 7.4% over 2022.

However, credit to the economy in the first half of the year grew at a slower rate than in the same period of previous years, reaching approximately VND 12.5 trillion, an increase of 4.73 percent compared to the end of 2022. This reflects the general difficulty in capital absorption of the economy in the objective context, which is dominated by a multitude of factors.

According to Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, monetary policy has never been as challenging as it is now. Raising or lowering interest rates, how to harmonize the story of credit quality and credit growth, how to resolve bad debts, and ensuring the financial security of the national finances, including the safety and soundness of the system of credit institutions... are all challenging issues.

"This problem is extremely difficult to solve because there are so many competing objectives. If credit standards are lowered, there will be a massive increase in credit, but bad debt and the financial decline of credit institutions will remain. Not to mention interest rates, the money supply, etc.', the Deputy Governor added.

In the remaining months of 2023, the State Bank stated that it will continue to administer credit by the established objectives and orientations, while simultaneously deploying solutions to eliminate obstacles, enhance the capacity of individuals and businesses to access and absorb credit capital and meet the needs of economic recovery and development.

P.V (Synthesis)