The president decided to provide zero-interest special loans to restructured banks?

According to Donghai

Investing.com – In a resolution announced by the Government Office on January 5 regarding the ongoing draft revision of the Credit Institutions Act, the government expressed its agreement with many of the State Bank’s (SBV) recommendations, such as standard intervention in early stage credit institutions, special Regulation, the treatment of real estate mortgages… However, the government has also made changes to some other specific contents.

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

According to the restructuring plan previously proposed by the National Bank in the latest draft, the zero-interest 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 jurisdiction of the National Bank.

In the April draft, the National Bank proposed providing “special loans” with an annual interest rate of 0% to banks in need of early intervention. To ensure system security, the State Bank will designate Vietnam Deposit Insurance Corporation, Vietnam Cooperative Bank or other credit institutions to provide zero-interest special loans.

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.

In addition, regarding the content of the decision to limit credit to one customer and one customer and related persons, the government also proposed changes in the direction of ensuring flexibility in the management and use of credit. A specific roadmap for applying for loan “ceiling” levels should be implemented in accordance with government regulations.

Previously, the State Bank of Vietnam released a roadmap to reduce loan limits for individual and group customers by 2028. Specifically, the credit limit for a single customer will be gradually reduced to 10% of the equity capital, and the credit limit for a single customer will be reduced to 15% of the equity capital. Available to customers 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.

In addition, government members also recommended that the National Bank fully absorb and ensure that regulations on the handling of collateral are feasible for real estate projects to facilitate companies to raise funds and banks to carry out credit activities.

The government has tasked the National Bank to continue studying the draft (amended) Credit Institutions Law. The content of the explanation needs to be in-depth analysis and convincing in order to resolve the difficulties in the actual operation of credit institutions, prevent cross-shareholdings and abuse of policies from breeding corruption and negative impacts, and ensure currency security…

Deputy Prime Minister Liming Kai guided the revision and completion of the legal project. Apart from. The Governor of the National Bank is authorized by the Prime Minister to sign the government’s written opinions on behalf of the government and send them to the National Assembly Standing Committee and the National Assembly Economic Committee.

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