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State Bank of Vietnam Deputy Governor Dao Minh Tu speaks during a meeting with executives from commercial banks in Hanoi. (Photo: VNA)

Hanoi (VNS/VNA) – Commercial banks were urged to launch a VND 40 trillion support package with an annual 2% rate cut for businesses during a meeting with the State Bank of Vietnam (SBV) last week .

“Now is the right time to launch the support program, which will build business confidence to accelerate production and business activities,” the SBV Vice Governor said. Dao Minh Tu.

As of May 20, Vietnam’s economy’s credit growth was 7.66 percent, double the figure for the same period last year. More importantly, growth was recorded in all major economic sectors, including those that have struggled since the start of the crisis. COVID-19[feminine] pandemic, such as tourism, transport and services.

This has been vital at a time when companies are in desperate need of capital to resume operations after a long hiatus and recent stock market turmoil.

“However, how quickly banks can deploy support depends on their ability to maintain financial viability,” he said.

The support program, approved under Decree No. 43/2022 of the 15th National Assembly, is the first to use public funds to support post-pandemic economic recovery through commercial banks. It was designed to include and grant access to capital as well as low interest loans to small and medium enterprises (SMEs), cooperatives and economic households.

The package, meant to work in tandem with current stimuli, aims to help businesses and households resume business activities, restore supply and demand and revive the economy, according to the central bank.

During the meeting, the SBV asked local authorities to coordinate closely with commercial banks to ensure transparency, fairness and efficiency in the process. On the other hand, the central bank said it should strengthen inspection and surveillance to minimize abuse and exploitation of state capital./.