16 banks to lower loan interests amid Covid-19
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Sixteen commercial banks have agreed to reduce interests on existing loans of Covid-hit businesses from now until the end of the year.
The banks include Vietcombank, Vietinbank, BIDV, Agribank, Techcombank, MB, VPBank, TPBank and Sacombank.
Lowering interests is difficult, but this is the time when banks need to share the burden with businesses, said Nguyen Quoc Hung, general secretary of Vietnam Banks Association, at a meeting Monday.
Agribank is committed to lowering its interests by one percentage point on average, while MB will do so for at least one percentage point.
Sacombank will seek shareholder permission as lowering the interest by one percentage point is equivalent to 40 percent of its profit target for the year. Some other banks will do the same.
But not all businesses will be eligible for the reduction. Bank leaders said they would focus on companies truly hurt by the pandemic
“Real estate companies with large profits, export firms or individuals borrowing money to buy cars should not be eligible for the reduction,” said Deputy Director of Techcombank Pham Quang Thang.
He added companies that are essential to the economy with a large workforce should be eligible.
Questions & Answers
Q.Which specific banks are participating in the interest rate reduction scheme?
Which specific banks are participating in the interest rate reduction scheme?
Vietcombank, Vietinbank, BIDV, Agribank, Techcombank, MB, VPBank, TPBank and Sacombank are among the sixteen commercial banks committed to reducing interest rates. The article does not name the other seven participating banks.
Q.Until when will the reduced interest rates be applicable for Covid-hit businesses?
Until when will the reduced interest rates be applicable for Covid-hit businesses?
The reduced interest rates on existing loans for Covid-hit businesses will be applicable from now until the end of the current year. This temporary measure aims to support companies struggling due to the pandemic.
Q.What criteria will banks use to determine which businesses are eligible for the interest rate reduction?
What criteria will banks use to determine which businesses are eligible for the interest rate reduction?
Banks will focus on companies genuinely affected by the pandemic, particularly those essential to the economy with a large workforce. Real estate firms with high profits, export companies, or individuals buying cars are unlikely to qualify.