State Bank :"It is not banks that are causing difficulties for oil and gas companies"

DNHN - According to the State Bank of Vietnam, petroleum companies face difficulties due to the regulation on the cost of importing gasoline, the formula for calculating the base price

The State Bank has just sent a written response to the petitions sent by voters of Quang Binh province after the XV National Assembly's 4th Session and 2nd Extraordinary Session, with notable content about the granting of credit to petroleum enterprises.

Voters specifically requested that the State Bank support and create conditions for key petroleum trading enterprises to increase their credit limits, and gain access to preferential interest rates, and foreign currency sources to assist businesses and businesses. Businesses increase their financial resources and reduce their gasoline import and purchase costs.

According to voters, this creates the conditions for businesses to swiftly execute procedures for borrowing capital and purchasing foreign currency to ensure a timely and adequate supply of gasoline and oil and to maintain the market's gasoline supply. Under the direction of the Ministry of Industry and Trade, contributing to the maintenance of petroleum reserves, stabilizing national energy security, and avoiding supply disruptions.

In this regard, the State Bank stated that it has instructed commercial banks to prioritize the granting of credit to businesses operating in the petroleum production and trading industries.

"Specifically beginning in March 2022, in response to complex fluctuations in the global petroleum market and domestic petroleum supply and demand fluctuations, the State Bank has issued numerous directives instructing commercial banks to actively balance their portfolios." Consider creating conditions to increase the credit limit granted to key petroleum trading enterprises so that they can import gasoline and oil by the Ministry of Industry and Trade's import quota," the response stated.

The agency confirmed that all of the reporting banks have provided sufficient credit lines for petroleum wholesalers at preferential interest rates as well as sufficient foreign currency sources for importers of this product.

According to data provided by 27 commercial banks, the total credit limit granted by 27 banks to 34 key petroleum trading enterprises by December 2022 is VND 171,429 billion, and the credit balance is VND 75,379 billion. The limit granted by commercial banks to the petroleum industry is 96,053 billion (approximately 56% of the total limit granted by banks).

The interest rates that commercial banks offer to major petroleum trading companies are frequently more favorable than the market average. The interest rates for short-term loans in VND range from 5.3% to 9% per year, while those for medium- and long-term loans range from 9.4% to 10.5% per year. The annual interest rates on loans denominated in foreign currencies range from 2.1-4.5%.

"Through monitoring and understanding the situation, it has been determined that the cause of the petroleum market shortage is the abnormal movements of the global petroleum market, which has affected the domestic petroleum market and many businesses." The petroleum business was inefficient and experienced enormous losses, so the company limited its operations and imported sparingly.

The formula for calculating the base price is not appropriate, not because of the credit limit, and petroleum companies also face difficulties as a result of regulations relating to the import price standards for gasoline and oil. The commercial banks' interest rates or foreign currency supply, Governor Nguyen Thi Hong informed.

PV(t/h)