Lang Son Agribank accompanies customers to overcome the pandemic

(LSO) – Along with the implementation of support programs for customers affected amid the complicated developments of the Covid-19 epidemic, the Vietnam Bank for Agriculture and Rural Development – Lang Son Branch (Lang Son Agribank) is having ready schemes to provide preferential capital to continue accompanying customers to recover post-epidemic production and business.

Since February 2020, when the Covid-19 epidemic broke out, Lang Son Agribank has been active to review and classify customer groups who are at risk of being negatively affected by the epidemic and prepare ready schemes to support customers of the high-risk group before the general direction of the State Bank. By April 24, 2020, the branch had supported 26 individual customers and 17 enterprises with a total supported outstanding balance of 562 billion VND. Of which, 372 billion VND of outstanding balance received reduced interest rates, 190 billion VND was rescheduled for debt payment  periods and kept debt groups.

Customers were making transactions at Lang Son Agribank

With a lot of customers being “farmers” borrowing loans for agricultural production with small outstanding balance, Lang Son Agribank’s view is to support all customers affected by the epidemic regardless of loan size. Taking Mrs. Mong Thi Them’s household, Van Lang district as an example, who has the outstanding balance of 50 million VND under the loan program to invest in rural agricultural production, April 2020 was deadline of the repayment. However, due to the impact of the epidemic, the bank rescheduled the debt repayment period.

Along with solutions to support customers of the outstanding balance, on April 17, 2020, recognizing that nationwide epidemic prevention and control had positive signals, Lang Son Agribank sent a document to direct specialized departments, transaction offices and district branches to deploy preferential lending programs for clients affected by the epidemic when registering for loans from April 1, 2020 to recover production. In which, it specifies preferential levels for each type of customers such as priority customers under the Circular No.39/2016/TT-NHNN of the State Bank of Vietnam receiving the reduced interest rate of 1% per year; the remaining subjects are entitled to the reduced interest rate from 1% to 2.5%  per year.

On that basis, units under Lang Son Agribank have directed credit officers to coordinate with grassroots authorities to review and list customers affected by the epidemic to assess the impact level and feasibility of capital use purposes, to apply reasonable support methods. Mr. Hoang Kim Vuong, Director of Binh Gia District Agribank said that the branch has recorded 203 customers affected by the epidemic with the outstanding balance of 46 billion VND. Currently, credit officers are cooperating with customers and grassroots authorities to assess the impact level. Cases confirmed by the grassroots authorities to meet the conditions prescribed by Agribank and wish to borrow capital to restore production, the branch will lend under the preferential interest rate program according to Lang Son Agribank’s directing document.

In addition, some district branches of Lang Son Agribank have been proactive in providing solutions to support borrowers in their self-decision making ability according to operational regulations. Mr. Hoang Van Cam, Director of Bac Son District Agribank said that in addition to applying the preferential lending program under the direction of Lang Son Agribank, the branch has reduced interest rates by 0.6% per year for medium-sized borrowers, 0.4% for short-term borrowers, and 1% for consumer borrowers to create favorable conditions for customers to re-produce and do business. Due to the activeness of its affiliates, Lang Son Agribank’s customers quickly benefit from the preferential lending program. Ms. Le Thi Thu Huong, Bac Son town, Bac Son district said that given the particular business of restaurant and guest house services, during the epidemic, her family had no income source because of the closure. On April 20, realizing that the business was about to resume, the family made a loan application and was advised by Bac Son District Agribank officer to carry out the loan procedure of 200 million VND under the preferential lending program with the preferential interest rate of 6.5% per year, about 2.5% lower than usual.

At present, Lang Son Agribank is continuing to review and assess the impact level, classify customer groups affected by the Covid-19 epidemic to provide timely and reasonable support. Mr. Trinh Xuan Doan, Director of Lang Son Agribank affirmed that the Bank is committed to always accompany customers, those customers who are affected by the epidemic, meeting the requirements of Vietnam Agribank will surely be advising to access the preferential interest rate program to facilitate the reinvestment in production and business.