The banking sector is building a credit support programme with a value of 285 trillion VND (over 12.2 billion USD) for firms hit by the epidemic of the acute respiratory disease caused by the SARS-CoV-2 (COVID-19), in an attempt to help ease their difficulties, according to an official of the State Bank of Vietnam.

Transactions at Eximbank (Photo: VNA)

In a recent interview granted to the Vietnam News Agency, head of the central bank’s department on credit to economic sectors Nguyen Quoc Hung said most of the commercial banks have registered to join the programme.

The official further said the interest rates will depend on the concrete situation of the customers, from 0.5-1 percent lower than those on the market.

Credit organisations are not short of capital, but the question is how the firms can absorb the support, Hung stressed, adding that the capital for the programme comes totally from the banks, not the state budget.

He however also warned of the possibility of bad debts as a result of the customers’ failure to pay due debts because of the epidemic.

At a recent conference on measures to support those firms and people affected by the COVID-19, a representative of the State Bank said in the initial stage, credit organisations had supported over 44,000 customers with loans totaling 222 trillion VND through various measures like restructuring their payment dates, reducing interests on their current or new loans, and exempting fees.