The headquarters of the State Bank of Vietnam (Photo: VNA) Hanoi (VNA) – Governor of the State Bank of Vietnam (SBV) Nguyen ThiHong has suggested sectors and localities take more measures to remove difficultiesfacing small- and medium-sized enterprises (SMEs), stressing that policysolutions are needed to help businesses access capital.
Speaking at a meeting between permanent Government members and the executivecommittee of the Vietnam Association of Small and Medium Enterprises (SMEs) inHanoi on July 6 to seek solutions to challenges facing SMEs, Hong recommended theGovernment organise a conference to review the implementation of support policiesfor SMEs in accordance with the Law on Support for SMEs, thus finding effectivemeasures to address issues faced by enterprises.
The banking sector has set interest rate caps for loans inpriority sectors, including SMEs, along with other policies, she noted.
SBV Governor Nguyen Thi Hong speaks at the conference. (Photo: VNA) Enhancing the effectiveness of local credit guarantee funds iscrucial because local authorities have the best understanding of businesses'operation within their jurisdiction, Hong said, expressing her belief that the allocation of resources to guarantee loans for SMEs will help credit grow higherand SMEs receive more support.
Toaccess capital, SMEs themselves need to address limitations that hinder banksfrom making lending decisions, and they should also improve their businessmanagement capabilities, financial situations, and enhance transparency in informationreporting, Hong said.
The SBV will continue to closely follow the Government'sguidance and economic and monetary developments, and coordinate with relevant ministriesand sectors to help businesses and people in general, and SMEs in particularaddress difficulties, she stated.
According to thegovernor, the central bank has cut regulatory interest rates for four consecutive times since the beginning of this year.
The SBV is one of the few central banks in the world to reduceinterest rates. Credit institutions are also actively reducing interest rateswith the average interest rate decreasing by about 1% compared to the end of2022.
The SBV regularly directs credit institutions to review loanprocedures, thus making it easier for enterprises to access capital inaccordance with legal provisions.
The central bank has made efforts to create favourable conditionsfor businesses to access loans through issuing Circular 02/2023/TT-NHNN on the rescheduling of debt payment and maintaining debt groups by credit institutions and foreign bank branchesto support borrowers in difficulties.
Hongꦑ emphasisedthe importance of interaction between banks and businesses, saying that thiswill hel🐻p identify difficulties and obstacles in order to collaborativelyaddress them in compliance with legal regulations./.
