The government proposes to assign the Governor to decide on special zero-interest loans

The government wants to maintain flexibility in the roadmap to “tighten” lending to customer groups. The government proposes giving the Governor the power to decide on special zero-interest loans to banks undergoing restructuring plans. This content was mentioned in the resolution announced by the Government Office on January 5.

With the completion of the draft revision of the Credit Institutions Act, the government expressed its agreement with many of the National Bank’s recommendations, such as criteria for early intervention, special controls, and the treatment of mortgaged assets. It’s real estate… However, the specific content of some other suggestions is also subject to comments and modifications by the government.

Specifically, the government commented on the authority to regulate the classification of debt categories, address risks and decide to provide banks with special loans with an annual interest rate of 0%.

Therefore, according to the restructuring plan previously proposed by the National Bank in the latest draft, the zero-interest rate special loan is decided by the Prime Minister. However, the government believes that this power should be delegated to the Governor as this is a specialized issue within the realm of the State Bank.

Previously, the National Bank proposed in a draft in April that it would offer “special loans” with an annual interest rate of 0% to banks in need of early intervention. In cases where it is necessary to ensure system security, the State Bank will designate Vietnam Deposit Insurance Corporation, Vietnam Cooperative Bank or some other credit institutions to provide special loans at zero interest rates.

At the same time, according to current regulations, only “specially controlled” credit institutions can obtain this “special loan”, but the loan interest rate is not clearly defined. According to relevant sources, the government has also proposed amendments to ensure flexibility in credit management and management. A specific roadmap for applying for loan “ceiling” levels should be implemented in accordance with government regulations.

In addition, the National Bank has also launched a roadmap to reduce loan limits for individual and group customers by 2028. Specifically, the credit limit for individual customers will be gradually reduced to 10% of the equity and 15% of the customer’s equity. and related personnel for 5 years. The proportions for non-bank credit institutions were 15% and 25% respectively.

The rule is designed to limit the concentration of capital into backyard businesses while meeting the legitimate needs of people and other businesses.

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