Promoting credit growth in the last months of the year

Despite the economic situation still facing many difficulties and challenges, since the beginning of the year, credit activities in the province have continued to be stable and growing. This shows that the solutions and policies to overcome difficulties and maintain growth momentum for the province's economy that the banking sector has implemented have been effective.

According to the State Bank of Vietnam , Ninh Thuan Province Branch (SBV), by the end of October 2023, the total mobilized capital in the province reached VND 22,145 billion, an increase of VND 153 billion compared to the previous month; an increase of VND 1,787 billion compared to the end of 2022 (up 8.78%) and reaching 97.12% of the yearly plan. Of which, savings deposits from residents are estimated at VND 15,195 billion, accounting for 68.62%; payment deposits reached VND 6,870 billion, accounting for 31.02%; issuance of valuable papers reached VND 80 billion, accounting for 0.36% of the total mobilized capital.

Comrade Nguyen Anh Tuan, Deputy Director of the Provincial State Bank, said: Not only directing and guiding credit institutions (CIs) to perform well in capital mobilization, since the beginning of the year, the Provincial State Bank has also directed CIs in the province to strictly comply with regulations on lending interest rates. In particular, to implement solutions to improve the economy's ability to access and absorb credit capital, the Provincial State Bank advised the Provincial People's Committee to issue documents directing departments, branches, and localities to promptly implement solutions to remove difficulties for people and enterprises in accessing bank credit capital. At the same time, strengthen direction and supervision of CIs in implementing credit programs and policies to remove difficulties, support economic and social recovery and development; support interest rates, restructure debt repayment terms and maintain debt groups, the VND 120,000 billion credit program, credit programs for the forestry and fishery sectors. Continue to effectively implement the bank - business connection activities; deploy the 20,000 billion VND consumer finance package of HD Saison Finance Company Limited and Vietnam Prosperity Bank Finance Company Limited (SMBC Company) to lend capital to workers for consumption with preferential policies...

Customers transact at Viettin Bank Ninh Thuan branch. Photo: Van Mien

Thanks to the timely and synchronous implementation of solutions, along with the lending interest rate level being gradually cut sharply by the State Bank compared to the beginning of the year, by the end of October 2023, the total outstanding credit balance in the province reached 41,150 billion VND, an increase of 223 billion VND compared to the previous month, an increase of 4,018 billion VND compared to the end of 2022 and reaching 99.84% of the 2023 plan. Outstanding loans in the first 10 months of 2023 focused mainly on the following sectors: Agriculture , aquaculture 8,790 billion VND, accounting for 21.36% of the total outstanding debt, an increase of 663 billion VND compared to the end of 2022; industry and construction reached 7,170 billion VND, accounting for 17.42%, an increase of 190 billion VND; Trade, services and community personal service activities reached 25,190 billion VND, accounting for 61.22%, an increase of 3,165 billion VND compared to the end of 2022. In addition, since the beginning of the year, credit institutions have also provided export loans with outstanding loans reaching 730 billion VND, an increase of 192 billion VND compared to the end of 2022; loans to support small and medium enterprises with outstanding loans reaching 7,060 billion VND, an increase of 541 billion VND; loans to support industry with outstanding loans reaching 1,390 billion VND, an increase of 19 billion VND; loans to high-tech enterprises with outstanding loans reaching 370 billion VND, an increase of 38 billion VND compared to the end of 2022.

Regarding the results of implementing measures to support borrowers to overcome losses caused by the COVID-19 pandemic, as of September 30, the outstanding debt reached VND 9,448 billion (of which the outstanding loan balance of corporate customers affected by the pandemic was VND 5,970 billion, the outstanding loan balance of individual customers, households, business households and other customers was VND 3,478 billion). In addition, banks have restructured the repayment period and maintained the debt group for 442 customers affected by the COVID-19 pandemic with a total restructured debt value of VND 551 billion. Exempted and reduced loan interest and maintained the debt group for borrowers with a total exempted and reduced debt value of VND 56 billion for 110 customers. The remaining new loan balance at the end of September 2023 was VND 1,869 billion with 3,632 customers (of which, corporate customers VND 1,405 billion/660 customers; individual customers and other customers VND 464 billion/2,972 customers). Particularly, the housing support loan program according to Resolution No. 02/NQ-CP dated January 7, 2013 of the Government and Circular No. 11/2013/TT-NHNN of the State Bank, the outstanding loan balance at the end of September 2023 was VND 6.92 billion with 59 customers. Social housing loans according to Decree No. 100/2015/ND-CP of the Government, as of September 30, the outstanding loan balance reached VND 81 billion/236 outstanding loans. Loans under the VND 120,000 billion credit program have not generated any new customers so far.

Vietcombank Ninh Thuan branch increases capital disbursement for businesses and people to invest in production and business.

According to the plan, in 2023, the provincial banking sector set a growth target of 12-15%, by the end of October, the growth rate of the sector had reached 10.82%. To achieve the remaining growth target, according to comrade Nguyen Anh Tuan, from now until the end of the year, the provincial State Bank will closely follow the socio-economic development plan of the province and the State Bank of Vietnam to flexibly manage credit to increase the capital absorption capacity of the economy. Along with that, the provincial State Bank will focus on directing credit institutions to focus on investing in production and business sectors, especially priority sectors with growth drivers of the province. Continue to reduce lending interest rates (striving to reduce 1.5-2%) for both new loans and existing debts to support businesses and people to restore production and business. Strengthen the application of information technology; promote information and propaganda work on non-cash payments. Continue to monitor the operations of credit institutions to promptly detect and warn of potential risks to ensure the safe, stable and growing operations of local banks. Promote the implementation of the policy of lending interest rate support of VND 40,000 billion for enterprises, cooperatives, business households, the credit program of VND 120,000 billion for social housing, workers' housing, renovation of old apartments and VND 15,000 billion for the forestry and fishery sectors... according to Plan No. 4425/KH-UBND dated October 24, 2023 of the Provincial People's Committee on implementing key and breakthrough tasks and solutions in the last 3 months of the year, to meet capital needs for local socio-economic development, contributing to completing the growth target for the whole year 2023.

Linh Giang

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