Bank-business connection: Unlocking capital, accompanying to overcome difficulties

– Over the years, the program connecting banks and businesses has become more and more effective and practical. Thereby, it creates favorable conditions for businesses to access credit capital sources and expand their scale. Additionally, during the complicated development of the COVID-19 pandemic, from the beginning of 2020 up to now, banks have taken many measures such as restructuring the repayment term; loan interest exemption or reduction; interest rate reduction … to support businesses.

As an business mainly operating in the field of basic construction, credit capital is very important for Long Thinh Trading Joint Stock Company (Hoang Tan village, Hoang Dong commune, Lang Son city). Mr. Nguyen Xuan Hau, Director of the Company said: “In the process of accessing credit capital, the company regularly received the attention, support and facilitation from Vietnam Bank for Agriculture and Rural Development – Lang Son Branch (Agribank Lang Son). Here, the bank staff are very professional, qualified, enthusiastic to guide on procedures, to advise on credit packages… Thanks to the access to credit sources, the company is able to maintain capital flow to ensure constant operation, production without interruption.”

Not only Long Thinh Trading Joint Stock Company, over the past time, many businesses have been facilitated by Agribank Lang Son to access loans to maintain and expand their scale of production and business. As of the end of July 2021, there were 264 businesses with outstanding loans at the branch with outstanding loans of over 3 trillion VND, accounting for about 29% of the total outstanding loans in the branch.

Mr. Trinh Xuan Doan, Director of Agribank Lang Son said: “Not only creating favorable conditions for businesses to access loans, the branch also actively supports businesses facing difficulties due to the COVID-19 pandemic in many forms such as the exemption, reduction of loan interest, lowering of interest rates; restructuring the repayment term and maintaining debt group…”

Only from the beginning of 2021 until now, there have been 45 businesses whose loan interest has been reduced by Agribank Lang Son with outstanding loans of nearly 500 billion VND and 17 businesses whose repayment term has been restructured with outstanding loans of more than 200 billion VND. Currently, the branch is reviewing businesses with credit relationships affected by the COVID-19 pandemic to continue to have timely forms of support.

In addition to Agribank Lang Son, other banks in the province in recent years have also performed well in supporting businesses to access credit sources. Ms. Truong Thu Hoa, Director of the State Bank of Vietnam’s provincial branch, said: “Following the direction of the central level and provincial level, over the past time, the Provincial State Bank of Vietnam has drastically directed branches of credit institutions in the province to implement credit policies and solutions, contributing to solving difficulties for businesses; reforming loan procedures in the direction of simplifying and improving the quality of appraisal to shorten the loan settlement time…”

Customers make transactions at Agribank Lang Son

Along with that, implementing the regulation on coordination with the Provincial Business Association, the Provincial State Bank of Vietnam has set up a hotline to receive feedbacks from businesses; organized dialogues to receive opinions and completely solve difficulties and problems of businesses in the process of accessing credit capital.

Accordingly, up to now, the province has 1,265 businesses that are having loan relationships with banks with a total outstanding loan of over 13 trillion VND, accounting for 39.5% of the total outstanding loan in the area.

Not only creating favorable conditions for businesses to access capital, from 2020 until now, facing the complicated developments of the COVID-19 pandemic, banks in the area have continuously adjusted lending interest rates to support businesses overcome difficulties. According to statistics of the Provincial State Bank of Vietnam, from 2020 to now, 314 businesses and cooperatives have been rescheduled for debt repayment and received loan interest exemption or reduction; lowered interest rates with a total supported loan balance of over 3.3 trillion VND.

Mr. Ho Phi Dung, Chairman of the Provincial Business Association said: “Under normal conditions, the bank’s support for businesses has been very important. During the pandemic, these support solutions are even more important, which contributes to maintaining production activities of businesses, helping them to overcome difficulties and develop. With its role, the Provincial Business Association will continue to grasp the production and business situation of member businesses; receive feedbacks, difficulties, problems … synthesize and send to the Provincial State Bank for coordination and timely settlement.”

As of the end of July 2021, the province has more than 3.3 thousand businesses operating with a total registered capital of over 29 trillion VND. Although the business scale is still small and faces many difficulties and challenges, especially difficulties caused by the COVID-19 pandemic, with support from many sides, including the banking system, the business community in the province is making efforts to overcome difficulties and rise to develop, making an important contribution to promoting the general development of the province.