Governor Nguyen Thi Hong’s “reaction” when a member of the National Assembly said “subsidy” in the granting of credit lines

As Dan Viet reported, on the afternoon of June 8, Deputy Trinh Xuan An (Dong Nai delegation) said, he very much shared with the Governor that for the credit sector and especially in banking, we must be safe. safety and avoid risks.

However, when asked the question of the current mechanism for granting annual credit lines to commercial banks, the delegate said that this mechanism still has the appearance of a subsidy-style management and perhaps inappropriate in the present context.

According to the delegate, the annual credit limit granting leads to the fact that every year it has to be re-granted, and when necessary, banks have to ask to loosen the room.

Especially in the current context, when we are implementing the 2% package of 40,000 billion, banks have money but cannot lend, it is difficult for banks to lend, while the stated goal is to urgent for Resolution 43.

“I think the proposal of commercial banks is reasonable and grounded, and also respectfully suggest to the Governor to study this mechanism carefully, should we implement it in the near future or not? no, so that we can keep pace with the general trends of the world I don’t know if there are any other countries in the world that do the same way as us in granting credit, ie granting quotas like Vietnam is doing or not. ?”, the delegate asked.

Any credit institution wants to see a lot of credit growth

Answering more delegate An at the questioning session this morning, Governor Nguyen Thi Hong explained, Vietnam has its own peculiarities. “The World Bank assesses that Vietnam is the world’s largest bank-capital dependent country. This is risky, so this credit limit tool has been effective, blocking interest races. interest rate, credit mobilization is high. There are years the credit of the economy increased by 53.8%”, she said.

Faced with the view that granting this credit line “blocks” cheap capital flows to borrowers, the Governor commented that any bank, when established, wants a lot of credit growth, but in the “shoulder” of the State Bank. must look at the macro management perspective.

“Every credit institution wants a lot of credit growth. If it meets all the desired limits of commercial banks, it will not be able to stabilize the macro as it is now,” she affirmed.

Loosing 2 million billion dong of interest rate compensation loans “poured” into risky areas

Regarding the credit package of VND 40,000 billion as mentioned by Representative An, during the questioning session this morning, delegate Hoang Van Cuong – Hanoi City National Assembly Delegation, a member of the Finance and Budget Committee also questioned the Governor. Nguyen Thi Hong.

Delegates said, how does the Governor have solutions to control the 2% interest subsidy subsidy program in the economic recovery package, to avoid unnecessary capital flows into the area, especially especially policy profiteering? After the pandemic, many businesses still have loans that have to be deferred, have not yet paid, and do not have any more collateral to mortgage. These businesses have good business plans and belong to the group that needs to be restored. The Governor said how this business can access the support package?

That is, about 2 million billion VND will be disbursed from this loan program. He asked about solutions to control this capital flow, preventing it from entering risky areas.

He also wanted to know if the State Bank had any solutions for businesses with old debts, currently unsecured, but with good business plans, belonging to the group that need to be restored… to access the package. this interest subsidy subsidy.

After explaining, Governor Nguyen Thi Hong explained that the 2% interest rate support package was given by the people to design regulations to ensure favorable implementation and limit difficulties, the Government, the State Bank, Ministries and sectors have held many meetings.

Two groups of beneficiaries are eligible for loans: One is enterprises and organizations in a number of industries and fields according to Decree 27 of the Government. The second is the object that needs to borrow social housing, housing for workers…

Related ministries and branches participate in the final settlement, and the State Audit will participate before the Finance Ministry finalizes this loan.

Enterprises have old debts, currently unsecured, can anyone access this support package? According to Ms. Hong, this support loan package is part of the economic recovery and development program, so it must be an enterprise that is able to repay and recover. The State Bank requires banks to lend to the right subjects. That is, even in the industry or field that can borrow, but that business will not be able to borrow if it is not able to repay and recover. This is to ensure capital flows to the right audience.