The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and the Vietnam Bank for Agriculture and Rural Development (Agribank) will provide credit packages worth VND60 trillion and VND100 trillion respectively to support customers amid the COVID-19 pandemic.

Transaction at VietinBank (Source: VNA)

The provision aims to realise the directions of the Prime Minister and the Governor of the State Bank of Vietnam (SBV) on implementing urgent measures to cope with the pandemic which is hitting all sectors hard.

Under its credit programme, VietinBank will cut the lending interest rates down by 2% compared to the previous ones. Meanwhile, Agribank's customers will enjoy interest rates 1% and 0.5% lower than normal for loans in VND and in foreign currencies respectively.

This programme will run until three months after the pandemic ends or the package is completely disbursed.

 Earlier, the SBV had instructed commercial banks to delay, extend, and reschedule debt payments as well as reduce interest rates and fees for enterprises, while providing new loans to help them overcome difficulties.

 Besides, the central bank also adjusted interest rates to support credit institutions with easier capital access.

 On March 13, the SBV Governor issued Circular No. 01/2020/TT-NHNN directing credit institutions and foreign bank branches to restructure their repayment periods, waive and reduce interest rates and fees, and maintain debt classifications in order to support customers affected by the COVID-19 pandemic.