Banking sector and enterprises accompany to overcome difficulties

Update: 07-01-2021 | 09:08:08

Not only was credit quality well controlled, constraining bad debts from arising due to the Covid-19 epidemic, Binh Duong banking industry has been actively implementing many relay programs to offer favorable conditions to businesses and opened up easy access to capital resources for maintaining production and business development.

Customer is offered saving interest rate consultancy at Binh Duong Vietcombank

To share difficulties with customers

Accompanying a Vietcombank Binh Duong credit officer to a large enterprise operating in the spinning industry in Rach Bap Industrial Park of An Dien commune, Ben Cat town, we were excited by the image of hundreds of workers rushing for the production of fabric yarn at the end of the year in a workshop area of nearly 20,000 square meters. The working atmosphere was vibrant again after a period of inactivity due to the epidemic. The company leaders said that before the epidemic 200 workers were in charge of the average productivity of about 800 tons of fiber a month for the turnover of about USD 2 million a month. Due to the epidemic, the company had to let workers take rotating leaves and the revenue was only 50% of the previous period.
Understanding and sharing with customers' difficulties, Binh Duong Vietcombank quickly reviewed and implemented the support to reduce lending interest rates from 0.5% - 1.0% a year depending on the loan with a total outstanding loan of about VND 350 billion of the company. At the same time, the bank extended the repayment period to keep the group of debts due to some due loans in 2020 with a total outstanding balance of over VND 50 billion VND. Thanks to that, right after the end of the social distancing, the company quickly restored its production and received new orders to ensure stable jobs for about 200 employees.

The leader of a sports shoe accessories manufacturing company in Binh Khanh street, Khanh Binh ward, Tan Uyen town also informed that thanks to the preferential loans and the debt structure due during the outbreak of Covid-19 offered timely support while creating great motivation to help the company overcome difficult times. The leader of the company said that in the first 4 months of 2020, the company's business situation was in crisis due to market slowdown and workers had to rotate work due to social distancing; most orders were suspended in tremendous damages. In the midst of difficulties, Binh Duong Vietcombank quickly facilitated the company to extend due debts during the past May and June. In addition, the company is currently applying a preferential loan interest rate of 2.7% a year compared to the normal interest rate. The structure of due debts and the reduction of the loan interest rate have supported the company to maintain production and business activities, pay salaries and retain skilled workers to gradually restore production and receive new orders. Up to now, the production and business activities of the company have been gradually restored, ensuring jobs and stable income for all workers.

The above are just 2 out of thousands of customers supported by Binh Duong Vietcombank and other banks like Vietinbank, Agribank, Sacombank, and HDbank in many solutions to help businesses overcome difficulties at the soonest to develop their production.

Continual support

Tran Ngoc Linh, Director of Bank for Investment and Development of Vietnam - Binh Duong Branch (BIDV) said that in 2020, Binh Duong BIDV has deployed a lot of support packages for businesses, which, in particular, was the decrement of 0.5 - 2% per year of interest rates compared to each type of rates affected by the Covid-19 epidemic and each industry. Thanks to specific and close policies, many businesses have received effective and timely credit support.

Lai Thi Bich Thuy, Deputy Director of Binh Duong HDbank said that after having information about the epidemic, HDbank conducted a statistical review of the number of enterprises being suspended for a period of time, during which, small and medium enterprises, mainly catering and accommodation services, were affected and accounted for 94 to 97% of businesses with difficulties. Therefore, HDbank has sharply reduced interest rates for small and medium enterprises loan packages. Up to now, the bank has reduced interest rates by 0.5-2% a year with a total turnover of nearly VND 24 billion. Currently, HDbank is keeping on to sponsor business programs along with reviewing procedures of loans to quickly fulfill within the day for businesses.

In similar response, Nguyen Thai Minh Quang, Director of BInh Duong Vietcombank said: “As soon as the epidemic began to affect our clients' business, we knew that a big challenge was in the way to fulfill our targets of business operations set out for the year. Therefore, Vietcombank has actively worked with customers to understand the situation and implement solutions for coordination and timely support.”

According to Quang, Vietcombank has always been on closely monitoring of the impact of the epidemic on customer operations to develop plan to support, coordinate, and handle appropriately and flexibly under regulations. In addition to solutions to support interest rates, fees, and debt structure, the bank also deployed many forms of support suitable to the customer situation such as the consideration of extending the loan term for new loans to match the working capital turnover while promoting payment declaration to support and sustain risks for customers in commodity transactions. Not only for corporate customers, Binh Duong Vietcombank has also been proactive for lower lending rates for many individual customers. Up to now, over 2,400 customers with outstanding preferential loans have been offered interest rates reduction by 1-3% a year from the announced interest rate of VND 9,900 billion, accounting for nearly 80% of total outstanding loans. In 2020, the total amount of interest that has been provided with incentives to support corporate customers was about VND 190 billion. Outstanding loans that have been structured unchanged due to the impact of the epidemic of Covid-19 deployed in 2020 were nearly VND 700 billion.

The strong and extensive implementation of programs to support enterprises showed the great efforts of the banking industry in the context of the Covid-19 epidemic which has profoundly affected most economic fields.

Reported by Thanh Hong - Translated by Vi Bao

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Banking sector and enterprises accompany to overcome difficulties

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