Firms are still facing difficulties in access to bank loans. (Photo: VNA)Accordingto the Vietnam Banks Association, the banking system has implemented manypolicies, such as restructuring repayment terms, exempting and reducing fees,and keeping the debt group unchanged for banks, to support businesses accordingto Circular 01/2020 of the State Bank of Vietnam (SBV).
Thedeposit interest rate has also hit the lowest level of many years, ranging from2.7-4 percent for less than 6-month terms, 3.7-5 percent for 6-12 month termsand 4.6-6.5 percent for over 12-month terms.
However,Pham Binh An, Deputy Director of the HCM City Development Research Institute,said firms are still facing trouble in accessing bank loans.
Accordingto An, after four months of strict social distancing recently due to the latestoutbreak of the COVID-19 pandemic, production and business of many firms havefaced challenges.
Surveysshowed about 70 percent of enterprises had to suspend operations while about 15percent of firms dissolved or are waiting to be dissolved. Only 16 percent offirms are trying to maintain operations.
Ansaid due to the temporary shutdown and moderate operation, the financial healthof enterprises is naturally difficult. About 86.4 percent of enterprises saidthey could maintain operations for less than three months. The numbers are veryalarming as if the difficulties continue, firms will be exhausted.
Accordingto An, firms are facing a dire need for capital, but the capital injectionis facing many bottlenecks.
Hesaid although the Government and the central bank required commercial banks toreduce lending interest rates, not all banks have followed the request andfirms still have to wait for banks to consider many conditions and criteria tosee whether or not they can borrow.
“Itwould be very difficult for firms to get credit support policies without theintervention of the SBV and the Government. Therefore, instead of just callingon and encouraging the participation of banks in supporting pandemic-affectedfirms, it is necessary to issue more specific policies," An told diendandoanhnghiep.vn.
LamThuy Ai, Deputy General Director of Mebipha Production and Trading Co., Ltd.,said many small firms in HCM City have almost gone bankrupt and they could notborrow from banks due to having no collateral.
Accordingto a Government policy on supporting employees and employers facingdifficulties due to the COVID-19 pandemic, firms can borrow from the Bank forSocial Policies at zero percent interest to pay employees' salaries, but it isextremely difficult for small- and medium-sized enterprises to enjoy the policyas it requires them to have business plans and no bad debts at creditinstitutions, Ai said.
Tohelp firms in access to bank loans, Nguyen Dang Hien, General Director of TanQuang Minh Trading and Production Company Limited (Bidrico), suggested banksshould raise the loan limit for firms from the current 70 percent to 85 percentof collateral and extend due debts until the end of 2021.
TheAlliance for Small and Medium Enterprises (SMEs) recently also proposed thePrime Minister to implement support policies for firms.
Specifically,it suggested the PM direct the Ministry of Finance to set up a 100trillion VND lending guarantee fund for SMEs to help the firms get access toloans without needing real estate collateral. To qualify for thepolicy, corporate borrowers must prove they have good operations withhealthy financial statements before the pandemic besides having import-exportor sales contracts and orders within the next six months./.
VNA
