Large commercial banks agree to further cut interest rates
HCMC – Four state-owned commercial banks have agreed to further reduce interest rates following their
Prime Minister Pham Minh Chinh recently chaired a meeting of the Government's Standing Committee with ministries, branches, and five state-owned commercial banks on solutions to reduce lending interest rates, the operation of the corporate bond market, and solutions in the coming time; the results of the performance of tasks of the Prime Minister's Working Group on reviewing, urging and guiding to remove difficulties and obstacles in the implementation of real estate projects for localities, businesses, and other agencies solution soon.
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At the meeting, Prime Minister Pham Minh Chinh emphasized that in the first quarter of 2023, our country's economic growth was lower than in 2022 due to objective and subjective reasons. For the economy to recover quickly and develop sustainably, it is necessary to assess and provide appropriate tasks and solutions to continue supporting businesses and people and promoting production and trade.
Over the past time, the Government, Prime Minister, ministries, and branches have issued relatively complete legal documents guiding and urging ministries, departments, and localities to implement solutions to remove difficulties financial market, corporate bond market, and real estate market.
Most recently, the Government issued Resolution No. 58 on critical policies and solutions to support businesses to adapt, recover quickly, and proactively develop sustainably. The State Bank has also published two circulars guiding the implementation of solutions related to the financial and banking sectors to support businesses and people.
At the meeting, the Prime Minister emphasized that while people and businesses are facing difficulties, the Government, ministries, branches, and localities must accompany and use all the tools of the State to share and support in the spirit of "harmonizing benefits, sharing risks."
It is necessary to organize the policy implementation well, simultaneously consider research, and promulgate breakthrough policies and bring them to life. The markets have more resources and motivate development, increasing aggregate demand and total supply and promoting three growth drivers: consumption, export, and investment.
The Prime Minister directed the State Bank of Vietnam, the Ministry of Finance, and the Ministry of Construction to use all tools according to their functions, tasks, and powers and issued documents and directions to remove difficulties and obstacles legal; assume the prime responsibility for organizing the implementation, and at the same time inspect and supervise the performance of specific guarantees, "what, where, who does when to complete" for the financial market, the corporate bond market, real estate market.
For the financial market: the Prime Minister requires guidance on credit institutions to implement and ensure appropriate, strict, feasible, practical, open, transparent, and applicable laws, regulations, and security systems; Strengthen inspection, inspection, control, and reduce the implementation of policies by the law, limit risks, and prohibit abuse, profit-making, loss, and illegal activities; Especially by reducing mobilization and loan interest rates, ensuring a balance and coordination between interest rates and interest rates, as well as between interest rates and inflation, increasing access to capital, and absorbing capital from people and enterprises.
The corporate bond market: needs to provide tools and methods to enable enterprises to issue conditional and capable bonds to bondholders following legal provisions; Enhance market confidence.
The Ministry of Finance should be more active in discussing with bond issuers and bondholders, based on harmonious interests and risk-sharing principles, to find a familiar voice and solution.
Real estate market: In addition to legal dismantling, it is also necessary to provide financial support for enterprises to complete projects and projects that will bring products to the market.
At the same time, timely resolve administrative procedures and carry out planning work. Enterprises must restructure the segmented housing market according to the needs and affordability of the people. Effectively implement the 120 trillion Vietnamese dongs social housing and worker housing credit plan while strengthening inspections and supervision to avoid profit-making and negative impacts.
Complete the application as soon as possible, and plan to reduce 2% value-added tax and land rent.
The Premier said that state-owned commercial banks account for a significant portion of the total economic credit. Therefore, these banks need to participate in leading and regulating the market, incentivizing and incentivizing the banking system, and supporting economic development; Continue to strive to reduce investment costs through measures such as technological innovation, governance, and strengthening digital transformation; Reduce interest rates and loan interest rates; Develop interest rate support policies for each specific audience, guiding credit to the required addresses and areas.
The Ministry of Finance should complete the file and plan to reduce value-added tax by 2% as soon as possible and reduce land rent... submit it to the competent department for review and decision; Urgently complete an impact assessment and propose alternative solutions under the implementation of the global minimum tax by the OECD, and submit them to the competent authorities for review and decision;
Review the conditions for issuing corporate bonds to the public as soon as possible to propose appropriate adjustment suggestions; Timely coordinate with the National Bank to develop plans to increase the licensed capital of state-owned commercial banks.
The Prime Minister confirmed that the government is firmly committed to maintaining macroeconomic stability, controlling inflation, promoting growth, ensuring a vast economic balance, and creating conditions for production and commercial activities, including banking activities.
Also read:
- SBV promises VND120 trillion preferential credit package for real estate sector (vietnamnet.vn)
- Vietnam Real Estate Credit Soars to $109 Billion in 2022 (nhipcaudautu.vn)
- Government agrees with MoF’s proposal on 2% VAT reduction for 2023 | Business | Vietnam+ (VietnamPlus)
