Long An: 2,635 billion VND loan balance from the interest rate support program under Decree No. 31 of the Government

Delegates at the conference

To implement the Resolution No. 43/2022/QH15, dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the program of socio-economic recovery and development, on May 20, 2022, The Government issued Decree No. 31/2022/ND-CP on interest rate support from the state budget for loans of enterprises, cooperatives and business households (Decree 31). The State Bank of Vietnam issued Circular No. 03/2022/TT-NHNN (Circular 03) guiding commercial banks to implement interest rate support under Decree 31.

Decree 31 states that the interest rate support for loans in VND arising from lending activities of commercial banks to enterprises, cooperatives, and business households with the purposes of using loan as prescribed in Clause 2, Article 2 of Decree 31. When a customer requests interest rate support and meets the loan conditions as prescribed by current law on lending activities, loan agreement is signed and disbursed in the period from January 1, 2022 to December 31, 2023; interest rate support for customers is 2% per year.

In implementing Decree 31, the State Bank of Long An has organized 3 online conferences. The branches of commercial banks in the area have reviewed customers in sectors and fields who are eligible for interest rate support, with signed loan agreements. As a result, 12 out of 34 commercial banks' branches have disbursed since January 1, 2022 and had a debt repayment date from May 20, 2022 (the effective date of Decree 31) for 85 customers, totaloutstanding debt of 2,635 billion VND. In which, documents and procedures for interest rate support for 43 customers have been guided, outstanding loan balance is 1,074 billion VND. As of September 30, 2022, the loan balance with interest rate support is 60.9 billion VND. According to forecasts, from now until the end of the year, loans will continue to increase.

Director of the State Bank of Vietnam Long An branch - Dao Van Nghiep affirmed that this is an interest rate support program from the State budget

At the conference, banks as well as borrowers all said that this is a meaningful program to help businesses reduce difficulties after Covid-19. In addition, a number of departments, agencies, organizations and businesses also shared the difficulties of businesses and people when accessing the support package as well as proposing solutions for the policy to come into reality.

Mr.Nghiep affirmed that this is an interest rate support program from the State budget, requiring commercial banks in the area to strictly implement Decree 31 and Circular 03. At the same time, commercial banks must promote communication; report on the situation, progress, difficulties, problems, proposals, recommendations of implementation to the State Bank of Long An; continue to review the list of existing customers in the sectors and fields who are eligible for interest rate support, with signed loan agreements.

Mr.Nghiep emphasized, commercial banks need to identify this as a central political task, which needs to be urgently, decisively, promptly implemented with the highest responsibility. If difficulties and obstacles arise, commercial banks need to promptly report to the State Bank of Long An for advice in order to effectively implement the tasks in Directive No. 03/CT-NHNN, dated 16 August 2022 on the implementation of the 2% interest rate support program from the State budget of VND 40,000 billion according to Decree 31./.  

By Staffs - Translated by Q.Thien

Source: https://baolongan.vn/long-an-du-no-cho-vay-2-635-ti-dong-tu-chuong-trinh-ho-tro-lai-suat-theo-nghi-dinh-so-31-cua-chinh--a143129.html