Banks launch bailout packages for coronavirus affected firms

The Bank for Investment and Development of Vietnam (BIDV) has launched a short-term preferential credit package worth VND10,000 billion which will run from February 24 to September 30 in support of those affected by the latest COVID-19 outbreak.

This comes after BIDV also deployed preferential short-term and medium-long-term credit measures worth over VND100,000 billion for SMEs, while also supporting them in digital transformation.

Meanwhile, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) reduced interest rates to loans from February 22, 2020, to May 22, 2020, for 105,000 existing clients with credit package worth VND350,000 billion.

Nghiem Xuan Thanh, chairman of Vietcombank's Board of Directors, said the financial institution will continue to provide businesses with support to help them weather the COVID-19 crisis.

For his part, Le Duc Tho, chairman of VietinBank's Board of Directors, revealed that his bank is devising suitable solutions for each group of affected clients, by adjusting the lending term and service costs in order to help them restore production and business as soon as possible.

Moreover, the Vietnam Bank for Agriculture and Rural Development (Agribank) has pledged to offer additional credit packages aimed at bolstering production of businesses, especially those operating in priority areas over the year ahead.

Huynh Ngoc Huy, chairman of LienVietPostBank's Board of Directors, said the bank will deploy appropriate credit packages and soft loans specifically for firms, along with developing more advanced utilities on the digital banking platform in order to provide clients with enjoyable experiences.

With regard to the real estate sector, Nguyen Tuan Anh, director general of the Department of Credit for Economic Sectors under the State Bank of Vietnam, has stated that SBV will continue to reduce lending rates to help property firms and inpiduals purchase houses with the aim of developing the local real estate market.

The Vietnamese economy is projected to enjoy a rapid recovery over the course of the coming year by many international organisations, with an anticipated growth rate of between 6.7% and 6.8%. Due to this, SBV is keen to keep interest rates at a stable level to support the macro-economy and boost businesses amid the complicated developments of COVID-19.