The 2% interest rate support package is for businesses that can recover and repay debt, not all difficult units, according to Governor Nguyen Thi Hong.
This content was stated by State Bank Governor Nguyen Thi Hong on the afternoon of May 25, when explaining to the National Assembly about the results of monitoring the implementation of the 2% interest rate support policy, part of the socio-economic recovery package.
According to the Government’s report, by the end of 2023, the 2% interest rate support policy per year through the commercial banking system will disburse 3.05%, equivalent to 1,218 billion VND. The remaining undisbursed capital is about 38,800 billion.
Many National Assembly delegates worry that the disbursement rate is too low, while businesses have difficulty finding capital after the Covid-19 epidemic. Mr. Tran Quoc Tuan, Head of the Propaganda Department of Tra Vinh province, said that loan procedures and conditions are the biggest obstacles when businesses access this support policy.
Not to mention, according to a survey by the Vietnam Confederation of Commerce and Industry (VCCI), only 29.5% of businesses knew about the policy and about 2.5% of units received loans.
Explaining, Governor of the State Bank Nguyen Thi Hong said that when designing this program at the request of competent authorities, the State Bank determined that this is a policy to support businesses with resilience and repay the debt. That is, the 2% interest rate support package does not address all difficult businesses in the economy, including units that are not eligible for loans, according to the Governor.
She analyzed that the program’s loan capital comes from the population mobilized by commercial banks, not the State budget. Therefore, banks must lend with prescribed conditions and procedures to ensure the ability to collect debt.
“The disbursement of more or less of this program depends on the decisions of businesses and banks,” the Governor said.
State Bank Governor Nguyen Thi Hong explained at the discussion session on the results of monitoring the economic recovery program, on the afternoon of May 25. Image: National Assembly Press Center
Ms. Hong added that in fact, businesses decide to borrow capital not because they receive interest rate support. Because interest rate is only one of the input costs, they can consider choosing other support solutions such as tax exemption, reduction, or deferral. Not to mention, businesses will consider what they are borrowing for, whether they can repay the debt or not… before deciding to borrow capital.
However, with the low disbursement rate and difficulty for businesses to access, Mr. Nguyen Quang Huan, Chairman of the Board of Directors of HALCOM Company, worries that “unexpected problems will arise when trying to spend all of this support package”. He suggested considering further implementation of this support policy.
Ms. Nguyen Thi Hong said that the 2% interest rate support program ended on December 31, 2023. The Government reported and proposed to the National Assembly to cancel the estimate, not mobilize resources and continue implementation. That is, the remaining undisbursed loan capital of the program will not increase the budget deficit. In case the implementation continues, she believes that it is possible to switch to the support policy of the Bank for Social Policies, or another social security program.
In this aspect, Mr. Tran Anh Tuan, Head of Ho Chi Minh City Enterprise Management Innovation Committee, agreed that the room has not been fully implemented to support low-income workers to find jobs, or access communal housing. festival.
Also explaining, Minister of Planning and Investment Nguyen Chi Dung said that it is necessary to review the methods of future support policies.. He said that in many countries, people receive cash support, 1,500-2,000 USD, which should stimulate consumption and the economy.
In Vietnam, according to him, support is implemented through policies, so there must be procedures, guiding documents, and supervision. “When we complete the procedures, the issue is no longer current and the support is no longer effective,” he said.
At the same time, according to Minister Dung, policies need to be designed to be simple, easy to implement and monitor, and “not leave a forest of entanglements like today”. Policies based on trust, decentralization, and radical separation of powers between the Central Government, localities, between the National Assembly and the Government… will greatly shorten implementation time.
“Policies issued in special situations require special procedures and processes, but doing it as usual will run out of time, and we have to ask for a mechanism for everything,” he added.
It is expected that the National Assembly will vote to approve the Resolution on results of monitoring the implementation of fiscal and monetary policies under the socio-economic recovery program on June 28.