Vietnam’s central bank proposes $12.3bln credit package for virus-hit firms’ revival

Credit institutions are building the programs to support virus-hit enterprises with $12.3 billion credit package, higher than $10.8 billion package planned earlier, said head of Vietnam central bank’s Nguyen Quoc Hung during the conference on Monday.

The program which does not use the State budget offers 0.5-1% interest rate lower than the market. Besides the country’s four biggest banks - Vietcombank, Vietinbank, BIDV, and Agribank, more than six other also join the program.

Earlier, the central bank praised 23 credit institutions that supported over 44,000 customers with a total loans of about $9.5 billion by rescheduling debt payment, exemption or reducing interest rates on existing debts, exempting and reducing fees.

The regulator reported a total outstanding loans of about $40 billion have been affected from coronavirus, accounting for 14.3% of the total loans of these credit institutions and about 11.3% of the banking system’s outstanding loans.

Prime Minister Nguyen Xuan Phuc announced to spend $1.16 billion to help businesses cope with the coronavirus epidemic and help the economy stick to its 6.8% growth target this year, Reuters cited information from Vietnam Television.

The package will be used for tax breaks, delayed tax payments and a reduction in land lease fees. The government would also speed up state spending on infrastructure projects.

► Vietnam announces $1.16bln stimulus package to help virus-hit firms

► Coronavirus affects nearly $40 billion outstanding loans in Vietnam’s banks

Source: NDH